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Statutory registers are the official record of a company’s vital details, including ownership, share allotments, and directors. The register is essential for corporate governance and legally mandated for businesses. This blog will discuss statutory register and their importance in business operations.
What are Statutory Registers?
Statutory register are official records of a company’s vital information that must be maintained under the Companies Act 2006. The registers include information such as the company’s shareholders, directors, charges, and significant persons with control. These records help keep track of the company’s ownership, governance, and financial activities.
Importance of Statutory Registers
Statutory register are essential for several reasons. Firstly, they help businesses maintain compliance with the law. All companies are required to keep and maintain up-to-date statutory registers. Failure to comply may result in sanctions, both legal and financial.
Secondly, statutory register provide a clear record of the company’s ownership and management structure, which can be helpful for business transactions such as mergers and acquisitions, the sale of shares, and due diligence.
Thirdly, statutory register are an essential tool for corporate governance. They ensure that the company’s directors and shareholders are held accountable for their actions and help prevent fraudulent activities.
Types of Statutory Registers
The Companies Act 2006 mandates several types of statutory register that companies must maintain. These include:
- Register of Members: This register contains information about the company’s shareholders, including their names, addresses, and the number and type of shares they hold.
- Register of Directors: This register contains information about the company’s directors, including their names, addresses, and appointment dates.
- Register of Charges: This register contains information about the company’s charges, including the creditor’s name, the amount of the cost, and the property charged.
- Register of Persons with Significant Control (PSC): This register contains information about the individuals or entities with significant control over the company, including their names, addresses, and nature of authority.
Maintaining Statutory Registers
Maintaining statutory registers can be time-consuming, but businesses must comply with the law. The registers need to be accurate, up-to-date, and accessible to those who need them. Many companies outsource the maintenance of their statutory registers to third-party service providers. This can save time and ensure that the registers are kept up-to-date by professionals familiar with the legal requirements.
How to Maintain Statutory Registers?
Maintaining statutory register is a crucial part of running a business. Here are some tips for keeping these records up-to-date and accurate:
- Keep accurate and up-to-date records: It’s essential to keep accurate and up-to-date records of all company structure or ownership changes. This includes changes to the board of directors, changes to the company’s share capital, and any transfers of shares.
- Store records securely: Statutory register contain sensitive information, so storing them securely is essential. Keep physical copies of the registers in a locked cabinet or safe, and store electronic documents on a secure server or cloud storage platform.
- Update registers promptly: Whenever there is a change to the company’s structure or ownership, it’s essential to update the statutory registers promptly. This will help ensure that the registers are always accurate and up-to-date.
- Seek professional advice: Maintaining statutory register can be complex, particularly for larger companies. If you need help to maintain these records properly, it’s a good idea to seek professional advice from an accountant or solicitor.
Conclusion
In conclusion, statutory registers are essential to corporate governance and compliance. All businesses must maintain accurate and up-to-date registers to comply with the law and ensure transparent ownership and management structure. Outsourcing the maintenance of statutory registers to third-party service providers can be a cost-effective way to ensure compliance and save time.