Company secretaries disappear - but their job must still be done

Although the new law removes the long-standing requirement for private companies to have a Company Secretary, directors will now be responsible for ensuring that legal compliance roles previously handled by their Company Secretary are still performed.

 

Directors who fail to cover these roles of their former Company Secretary could find themselves in trouble, according to the UK’s biggest provider of professional business services and information to companies and their advisers.

 

Janis Law, Group Chief Solicitor at Jordans, said: “Even though the Companies Act makes the named role of Company Secretary optional from 6th April, much of their work must still be done to comply with the law. If it isn’t, then the company’s directors will be liable”.

 

Jordans conducted a recent survey among private companies and their professional advisers which revealed that more than a third (36 per cent) saw advantages in no longer having to have a Company Secretary.

 

"The danger highlighted by our respondents is that more companies may fall into default with important filing obligations if there is no Company Secretary to deal with them”, said Ms Law.

"Private companies will still have a number of legal obligations to fulfil, such as keeping registers, filing annual returns, approving and filing accounts, and ensuring that company law procedures are properly followed when changes occur in the company. From 6th April, directors will be responsible for these matters.”

 

Jordans can help reduce directors' exposure to risks associated with these changes with our specially-tailored Directors' Compliance services.  Find out more 

12^th March 2008