For some business entrepreneurs the word 'compliance' causes shivers down their spine and a lot of headaches. 'It's such a time-consuming job and I have to focus on bringing new customers to the business! I cannot spend my time doing so much paperwork!', they often shout in despair.
Directors of large organisations have a slightly different problem: 'Is my company fully compliant with the latest laws? What if my financial director is too busy that he or she turns a blind eye to legal issues', or, 'Does business compliance cost me too much?'.
The problem is that every company, large or small, private or public, must comply with the Companies Acts and file relevant documents with Company Secretary House by fixed deadlines. Failure to do so might result in financial penalties and possibly more serious legal consequences for the company.
So what's the solution?
The easiest and usually most cost-effective way to ensure that your business complies with the law, and to enable the directors to concentrate on pursuing the company's strategic aims, is to appoint an experienced company secretary to manage the compliance matters.
Outsourcing this function to company secretarial specialists brings further benefits, such as:
time and money savings
assurance that your compliance issues are dealt with by professionals who possess detailed knowledge and experience
no more penalties or risks to your company's reputation for late filing
possibility to focus on the company's core activities rather than its administration and legal issues.
What does a company secretary actually do?
A company secretary, known as a corporate secretary in the United States, is a senior role in a private or public organisation, responsible for company's compliance, governance and liaison with regulatory bodies, such as Companies House. A company secretary often acts as a chief administrative officer enabling the company directors to concentrate on core company functions and running the business.
Responsibilities of company secretaries vary depending on the size of the company and complexity of its operations. Typically, a company secretary in a private limited company:
provides guidance to the board on the members' requirements and obligations contained in company law
maintains statutory registers, transfers shares and issues new certificates
updates the company file with the Registrar of Companies within specified time limits
ensures compliance with company law, commercial law, health and safety law, environmental law, employment law, etc
liaises with shareholders, distributes notice of meetings and annual returns to them
prepares legally required documentation and oversees legal matters. This requires company secretary to be familiar with commercial, employment and other laws.
manages company and board meetings, compiles and distributes minutes
files accounts and annual return within specified time limits
carries out instructions of board
acts as board and/or chairman's confidante
protects the company's assets such as the statutory books, records of the company, confidentiality of the board's work and other aspects of corporate security
supervises the arrangements to allow shareholders and other parties to inspect certain records of the company and to provide access to statutory and other bodies to inspect other records
for listed companies, liaises also with the Stock Exchange and ensures the requirements of the Listing Rules are complied with.
Conclusion
You will notice benefits of having a company secretary dedicated to managing your compliance matters really soon. Outsourced specialists will provide even more advantage to your business in the current hard times.
