Appointment of Company Director and Company Secretary in the UK
3E Accounting explains the compliance rules for appointment of company director and company secretary in the United Kingdom.
Limited companies in the United Kingdom are governed by the Companies Act 2006. They are usually private or public limited companies, or a company limited by guarantee. One of the general statutory requirements is that a limited company must have at least one director. The appointment of company director and company secretary in the United Kingdom is an essential part of a company’s incorporation process. They will manage its business and are considered as representatives or agents of the company.
Choosing Your Company’s Officers
Directors of a company and company secretaries are deemed officers of the company. While directors manage and run the business, company secretaries usually handle crucial administrative responsibilities.
Duties and responsibilities of directors, amongst others, include:
- Managing and running the business of the company.
- Registering the company for tax.
- Maintaining accurate accounts and financial statements.
- Ensuring annual filing and tax returns are done.
Company secretaries have the following duties and responsibilities, amongst others:
- Managing accounts, collating financial statements, tax returns and annual filings.
- Acting as a signatory on behalf of the directors.
- Maintenance of company register and information.
- Updating Companies House and HMRC on changes in the company.
To be qualified for appointment as a director, an individual must meet the following criteria:
- Be at least 16 years old and above.
- Must not be a disqualified director.
- Must not be an undischarged bankrupt.
The question that is most often asked when it comes to company formation is, does a UK company need a UK resident director and company secretary? As per statutory compliance, a company director need not live in the UK, while a company secretary can also be a director. However, UK laws on company formation, taxation, etc. will apply irrelevant of where the director resides.
All public limited companies are required to have a company secretary, but private limited companies have an option to either have one or not. Company secretaries are usually highly qualified professionals due to the nature of their jobs. They should also not be undischarged bankrupts and disqualified directors. It should be noted that all directors and company secretaries are not permitted to function as a company’s auditor as well.
Appointments and Removals
Directors are appointed by the shareholders or owners of a company in accordance with the Articles of Association. It can be done in writing or by passing a resolution at a general meeting. Company secretaries can be appointed and removed at the discretion of the company at any time after the company is incorporated.
All changes must be notified and updated with the Companies House and the statutory register of directors or secretaries, as applicable. Changes can be done online or via a company formation specialist such as 3E Accounting. To know more about the appointment of company director and company secretary in the United Kingdom, Contact 3E Accounting today. As global experts with years of industry experience, 3E Accounting offers unparallel professionalism and cutting-edge business solutions. Contact us today to speak to our friendly team of specialists.