The importance of statutory books
A company’s statutory books are made up of registers which are required to be held under the Companies Act 2006 and must be updated according to any changes that may occur.
These registers include the following:
- Register of the company’s charges
- Details of all directors and secretaries
- Register of members, detailing shareholders and their respective shareholdings throughout the history of the company
- People with significant control
Details of any share allotments and transfers, along with other corporate documentation such as certificates of incorporation, board minutes and articles of association should also be stored with the statutory books.
These should be stored at the company’s registered office or another appointed location which must be notified to Companies House, and they may be stored in hard copy or electronic form. If they are stored in electronic form, they must be capable of being reproduced in hard copy.
Reasons to keep your company’s statutory books up to date:
- It is a fineable offence to not comply with the Act- If anything is missing from the statutory registers, a fine could be incurred, up to a maximum of £5,000 depending on the information missing.
- To ensure you are up to date with the current shareholdings following any changes.
- If any of the statutory books are missing or out of date, this could cause problems in the case of coming to sell the company. They provide the buyer with evidence of the company’s history and failure to supply these could delay the sale and incur time and money being spent on the reconstitution of the records.
Here at MHA Moore and Smalley we offer company secretarial services which means we can ensure that your statutory registers are maintained along with ensuring that any filing requirements are met on time, giving you peace of mind to focus on your business.