Some limited company directors choose to appoint a company secretary. This is not a legal requirement, and so whether or not one is appointed is a matter of personal preference.There are a number of administrative requirements a company is obliged to do to remain on the register at Companies House. This is known as company compliance. Some business owners will find these a burden and distraction from the day to day running of their company. They can either appoint someone in the company to do be responsible for these duties or outsource the function to some experts, who look after lots of companies. We offer an annual secretarial service you can find out about this on our company secretarial services page.
A company secretary is essentially responsible for all the company administration which is also know as company compliance.
This means they are accountable for the submission of confirmation statements and other important documents to Companies House, and they often take up a number of other administrative matters such as arranging board meetings. The company secretary cannot be the same person as the limited company director, however, in the absence of a company secretary, the company director will need to absorb the required duties.
There is no formal training required of a company secretary. They will, however, be responsible for a lot of administrative work. It is recommended that the ideal person in the role is naturally organised, efficient, and has some understanding of the business structure and finances.
A company secretary plays a largely supportive role, taking care of important tasks such as general administration, shareholder communication, corporate governance, and statutory compliance/filing of accounts. In short, the secretary acts as a bridge between the company, the shareholders and Companies House, ensuring all the relevant information is shared in compliance, on time and efficiently.
The role of company secretary involves lots of different tasks, and so an organised individual with prior experience in an administrative role is often a preferred candidate.
A company secretary will take care of a number of administrative tasks, including:
If you are considering becoming a company secretary for a small company or training to become a chartered secretary, you should be aware of the pressure that can accompany the role. A company secretary has legal requirements and responsibilities, such as compliance, paperwork and financial matters.If you are the business owner and are considering who to appoint as a company secretary, it is important that you select someone trustworthy and capable for the job.
According to the Companies Act, chartered secretaries of large public companies can face prosecution if they are neglectful or willingly act in violation of the law. Company secretaries in smaller companies are unlikely to face the same severity of consequences, given that these roles are often loosely defined. If you are considering becoming a company secretary, you should be aware of the pressure that can sometimes accompany the role, along with the risk of joint liability in the event that there are breaches of the Companies Act 2006; for example, failing to file a confirmation statement can result in large penalties and possible criminal charges.
Any Questions? Call Us FREE! 0808 168 3676
Do you require further assistance? Call our FREE helpline to speak with our professional advisers.