Do you know where your company’s statutory books are and, more importantly, are they accurate and up to date?
These questions are often only considered when a sale of the company is imminent and, at that point, it is common to find that many statutory books either cannot be found or haven’t been opened since incorporation.
Does this matter, or are statutory books just a historic relic?
The answer is that statutory books do remain of vital importance. There are, not least, statutory requirements to maintain up to date registers covering several matters in respect of each company.
You may also be surprised to read that these requirements are not met merely by staying up to date with Companies House filing formalities. In particular, the filing of a compliance statement (whether annually or more regularly) will not, alone, meet the obligations.
The need to maintain an up to date register of members is perhaps the most important requirement. This is because the law states that only the members registered are legal owners of the shares and, on the face of it, the only ones entitled to enjoy the rights attaching to those shares. This can have implications for making shareholder decisions, declaring dividends, or, indeed, selling a company.
We can help you to review your statutory books and address any issues that are found. We also offer a company secretarial service through which we can maintain your company’s records and handle Companies House filing requirements.
This is not something to put off until you want to sell; make sure now that your company’s records are in order and that problems do not arise in the future.