Company Officers
The commonly referred to as ‘officers’ are limited company directors and secretaries. Members (shareholders) select the directors to run and manage the day-to-day operations of the company. Secretaries are open to private companies but not to public firms. Generally, they are named to help with critical administrative duties for directors.
Could Anyone Be A Director Of A Company?
The person named to manage a business is a director. One individual or a corporate body may play this position. In your company, you can have just one director, or you can have many – it’s up to you.
All natural (human) directors to be named must meet the following criteria:
– Will be 16 years or older
– Cannot be a bankrupt unfilled
– Can’t be auditor at the company
– Could not be on the Registre of Disqualified Directors
Shareholders are often directors of their own companies. It is very common for one person to set up a limited company on their own and take on the roles of sole director and sole shareholder.
The Duties Of Director Of A Company
In accordance with the Companies Act and the association articles, directors are required to run a company. They are put in a position of confidence and require to encourage business success and make decisions purely for the good of the corporation, not for personal gain.
– The corporation files for corporate taxes
– Prepare and submit quarterly confirmation forms, taxable reports and tax returns
– Maintain reliable business and tax records
– Make those records publicly available for inspection
– Changes in the report to Companies House and HMRC
– Payroll and payment handling
Failure to meet these statutory duties will result in fines, litigation and disqualification.
Difference Between A Director And A Shareholder
The business is run by a Director. The firm is owned by a parent. It is often the case, however, that those who are named as directors are also shareholders, and vice versa, particularly in small firms and start-ups.
Differences Between Natural Directors And Corporate Directors
A natural director is a human being. A corporate director is a term used by another corporation, company or agency named as its director. A business may have as many general managers as it wants, but there must still be at least one natural directors.
Non-Resident Directors
UK company directors can live anywhere in the world and they don’t have to be UK citizens so you can run a British business from any country. You’ll also need to abide by UK tax laws and business reporting standards.
When you are thinking about forming a UK company as a non-resident, please work with an accountant or business advisers.
Appointing And Removing Directors After Company Formation
You can remove a director and/or appoint a new director whenever you wish, provided that any removal or appointment adheres to company law and association papers.
The right to appoint and dismiss directors is usually held by shareholders and directors. They control their duties and powers. Members are expected to pass a resolution at a general meeting or in writing, in order to name or remove a director.
You will notify Companies House as soon as possible if you alter the specifics of naming or deleting a director or any current directors. Use the Companies House form AP01 for appointing or TM01 for removal to do this online through your business creation agent, or online or by email.
Only the formal directors list should be revised.
Secretaries
It is an optional position for private businesses, and if you don’t need or want to, you don’t have to nominate a secretary unless the articles of association says otherwise.
A company secretary’s aim and function is to reduce the company directors workload by, for example, taking on some of their statutory duties and responsibilities:
– Completing and issuing reports, annual statements and tax returns
– Maintain business documents and registers
– Reporting improvements to HMRC and Companies House
– Arrange meetings and meeting minutes
– Directors sign contracts and papers
– Supervising payroll
Any individual or corporate body may be the secretary of a private corporation, as long as they are not also the auditor of the corporation, a disqualified director or a debtor who has not been discharged.
There are no formal qualifications needed to hold the Secretary’s position in a private limited company, but the job requires a great deal of experience, expertise and competence. Any person appointed as a secretary must be able to effectively fulfil the responsibilities and duties.
Appoint Or Remove A Secretary After Incorporation
Upon enterprise forming, you can name and/or withdraw a secretary at any time. All such changes must be reported directly to the registrar through your company forming agent, electronically or by post using the AP03 for appointment or TM02 for removal Companies House form.
Even the formal secretarial registry should be revised.
