When handling transactions with companies, one of our initial requests is for the company’s Statutory Registers. Responses to this question can vary, as not all directors are aware of the corporate governance requirements to maintain and update these registers.
Under the Companies Act 2006, companies are required to maintain the following registers:
- The register of members;
- The register of directors;
- The register of people with significant control over the company;
- The register of director’s residential addresses; and
- The register of secretaries.
These registers are statutory requirements and must be kept up to date by the directors.
The register of members should detail the identity of all shareholders, the number of shares they hold and when those shares were issued or transferred. The records should be fully chronological, from the incorporation of the company to the present date. Therefore, following any transaction of shares, the register should be updated.
The register of members is the primary evidence of shareholdings within the company and takes precedence over share certificates in respect of ownership.
Similar requirements exist for the Register of Directors and the relatively new Register of People with significant control.
For those looking to sell your business or raise investment, it is important that your registers are reviewed. Having them accurate and up to date will create a much better first impression than if significant remedial work is required.
If your statutory registers are not currently up to date or you would like assistance getting them in order, we can help through our company secretarial services. These services can alleviate the administrative burden and allow you to continue to focus on the day-to-day running of the business.
For further information don’t hesitate to contact Niamh Wilson at ngw@swinburnemaddison.co.uk, alternatively please call our corporate team on 0191 743 0544 to discuss all options available to you.
