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Jordans

COMPANY SECRETARIES HAVE DISAPPEARED - BUT THEIR JOB MUST STILL BE DONE

Scottish directors will be liable if they get it wrong, warns top company law specialist

Company secretaries disappeared in Scotland on 6th April, as one of many measures under the new Companies Act – the biggest piece of legislation ever handled by Parliament. 

Although the new law removes the long-standing requirement for private companies to have a company secretary, directors will now be responsible for ensuring that legal compliance roles previously handled by their company secretary are still performed.

Directors who fail to cover these roles of their former company secretary could find themselves in trouble, according to Oswalds, which provides professional business services and information to companies and their advisers. 

Andrew Cockburn, Director at Oswalds, said: “Even though the Companies Act made the named role of company secretary optional from 6th April, much of their work must still be done to comply with the law. If it isn‘t, then the company‘s directors will be liable.”

Oswalds conducted a recent survey among private companies and their professional advisers which revealed that more than a third (36 per cent) saw advantages in no longer having to have a company secretary. 

“The danger highlighted by our respondents is that more companies may fall into default with important filing obligations if there is no company secretary to deal with them,” said Mr Cockburn.

”Private companies will still have a number of legal obligations to fulfil, such as keeping registers, filing annual returns, approving and filing accounts, and ensuring that company law procedures are properly followed when changes occur in the company.  From 6th April, directors became responsible for these matters.”

To highlight the danger and assist directors, Oswalds has introduced a new “Directors‘ Compliance Service” to sit alongside its already very popular range of company compliance and secretarial support services. 

ENDS             22nd April 2008  

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

Notes to Editors 

  • Oswalds is part of the Jordans Group, which has been providing professional business services for over 140 years. These services now include company formations and administration in the UK and internationally, and business information. 
  • Jordans has been offering company formations for all of its 140 years.  As well as forming all types of companies, they provide software – Incorporator - for clients who undertake volume formations and PCSec, a software package which helps company secretaries administer their companies.
  • Oswalds and Jordans offer a wide range of support in company administration, including acting as company secretary, statutory accounting, registered office and corporate legal services.
  • Oswalds and Jordans have been providing international corporate services for many years. With offices in Bristol, London and five offshore locations (Jersey, Gibraltar, Cyprus, British Virgin Islands and Seychelles) Jordans Ltd is able to provide full UK and international support for their clients.  International services include setting up UK or offshore companies and trusts, company management and professional trusteeship.
  • Oswalds is committed to providing a first-class service and enjoy a reputation for quality, reliability and professionalism.