The importance of good record keeping

Good record keeping is important for all businesses and The Companies Act (2006) requires businesses to keep a statutory register, which also needs to be reviewed and updated.

Details which need to be recorded include:

• Register of Shareholders

• Register of Directors

• Register of Directors’ Residential Addresses

• Register of Secretaries

• Register of People with Significant Control

• Register of Charges

It is also recommended although not a legal requirement, to keep:

• Register of Applications and Allotments of shares and share capital of the business.

• Register of Transfers showing all share transfers which have taken place.

All of this record keeping is important and a failure to maintain the statutory registers may result in the company committing an offence, along with all of the officers of the business which is usually punishable by a fine.

The company is also legally obliged to maintain and have open to inspection its statutory registers by any shareholder of the company (for free), or to a member of the public (usually for a fee). If a member of the public makes a legitimate request to inspect the registers, the business must comply within five working days, or again both it and the officers will have committed an offence and may be fined.

If you would like to review your statutory obligations as a company director or officer or would like help and support please get in touch.

Sarah Astley can be contacted at
s.astley@gullands.com