What books must a company keep?
As if starting a business is not hard enough work, understanding what paperwork is necessary probably sounds like inviting another headache. Luckilly Chris Wills, a partner at Willans LLP is on hand.
All companies are required under the Companies Act 2006 to keep their company books up-to-date.
This note helps employers check that they are including everything to keep their books in good working order, writes Chris Wills, a corporate and commercial law specialist at Cheltenham-based Willans.
members
applications and allotments of shares
transfers of shares
directors and their addresses
secretaries
debentures
mortgages and charges
sealings and executions
people with significant control
residential addresses of people with significant control
and copies of any board minutes and documents lodged with Companies House.
The following provisions of the Companies Act 2006 (CA 2006) apply:
Register of members
Section 113 of the CA 2006 says companies should keep a register of its members and record:
their names and addresses
the date when each person was registered as a member and the date they ceased to be one
a statement of shares held by each member distinguishing each share by its number (if the shares are numbered) by its class (if the company has more than one class of issued shares), and the amount paid or agreed to be considered as paid on the shares.
Section 114 of the CA 2006 states that a company’s register of members should be made available for inspection and the company must give notice to the registrar of the place where this register is kept available for inspection and any change to that place.
Section 112 of the CA 2006 defines a member of the company (ie a shareholder) by reference to the register of members. Failure to maintain a register of members means that the identity of the company’s shareholders is uncertain.
Read more on Willans’ website…
Disclaimer: Please note that this fact sheet is for guidance only and is not intended to replace legal advice.
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