Do any of you reading this column know what Statutory Books are? If you are a director or proprietor of a limited company – whatever its size – you should. The box below may help the readers that are not entirely sure.
So why are Statutory Books important? Well, do you want your company to stay in business? Do you want to be sure you have title to your shares in the company? The Statutory Books are the core records which, when all else fails, provide the court with evidence of share ownership, share transfers and other important issues like the appointment or resignation of the company’s officers. Not necessarily important when dealing with the day-to-day running of the company but essential when anything of importance regarding the ‘big’ issues arises.
Most solicitors readily agree that once a company has been formed or an acquisition completed, the Statutory Books go onto a dusty shelf and never get opened until the next crisis arises. Actually it’s how solicitors work – driven by ‘matters’ when new instructions are received from clients. "We are hopeless at dealing with routine compliance issues", a local solicitor recently admitted to my client at a completion meeting. At least he was being honest!
The answer, of course, lies in using a professional company secretary whose job is to ensure these issues are regularly reviewed and kept up to date. Peter Javes, the new manager of the Company Secretarial department at Windsor Stebbing Marsh is just such a professional. "The firm is geared to dealing with routine annual compliance issues and my department intends to be the premier outsource supplier for company secretarial work in the area", said Peter.
So be warned. Don’t leave these important legal records to chance. Know where they are at all times and keep them up to date and regularly under review. Good housekeeping always pays dividends in the long run.
Statutory Books Should Comprise:
- Memorandum & Articles of Association
- Certificate of Incorporation
- Register of Members
- Register of Transfers
- Register of Directors and Secretaries
- Register of Directors Interests
- Register of Mortgages and Charges
- Register of Debentures
- Minutes of Directors and General Meetings
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.