Company Statutory Registers – do you have them?
Every Company is required to maintain certain Statutory Registers (see here for more details), however, due to normal business pressures, outside of regulated or listed entities maintenance of these registers tends to drop down, and in some cases off, the ‘to do’ list.
What are the consequences for a Company (particularly an SME) of not being able to produce their up-to-date Company Registers? Putting aside the Company’s and Director’s statutory duty to maintain such, at some point in most growth/development discussions a Company’s Register of Members and Register of Directors will be required. Post establishment of a Company any allotment of shares or share transfers become effective on the entry of them into the Register of Members, this is the prima facie evidence of the ownership of the shares in question. The inability to provide a current (and correct) Register of Members at relatively short notice could seriously delay and in some cases lose, the next “big” growth/investment opportunity. Not being able to produce a current Register of Directors can also give rise to unnecessary and unhelpful questions.
If you are looking to the future for your business and thinking about outside investment, you may want to consider a quick “health check” of your Company Registers, which we at FCS Services can assist you with.
If you have any further queries or would like assistance with your Company registers please call Anna or Bernadette on 0353 (0) 91 704818