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The added responsibilities of being a Company Director
21 March 2020
Taking that leap of faith and setting up your own company is scary.
You’ve got the business plan, the finance and the customers all lined up. You’ve probably even incorporated your own company using one of the many easy to use online formation companies… so all is good with the world!
But do you realise the responsibilities that come with simply “being” a director?
You are legally responsible for the running of the company, but more importantly you are legally responsible to make sure specific information is sent to Companies House. Failure to comply with Companies House can bring hefty fines, prosecution and even prison sentences for the directors.
In a nutshell there are seven basic areas you have to report to Companies House.
The Basic 7 Reports
- File your annual confirmation statement.
- File your annual accounts.
- Notify them of any changes to the company’s officers or their personal details.
- Notify them of any changes to the address of the registered office address.
- Register any allotment of shares.
- Register any charges (mortgage).
- Notify them of any changes with your company’s people who have significant control (PSC) details.
But it doesn’t end there, you have duties to perform under the Companies Act 2006
Your 7 Duties
You must follow the company’s constitution and its articles of association.
- You must act in the company’s best interests to promote its success.
- You must not allow other people to control your powers as a director.
- You must perform to the best of your ability, exercising reasonable care, skill and diligence.
- You must avoid conflicts of interest.
- You must not accept benefits from a 3rd party offered to you because you’re a director.
- You must disclose any personal interests in a transaction.
Overwhelmed? If you struggle to understand what, or how, you need to do to comply with rules of Companies House let us help you to look after your company’s secretarial duties.
Company Secretarial – the serious side to looking after your company’s compliance and corporate governance (making tea, answering the phone and typing not included!)
After concerns over how lack of transparency can hide the misuse of UK registered companies. Changes have happened.