Have you ever wondered about who the officers of an LTD company are and what each does in the overall functioning of the business? As part of any business venture, ensuring you have the right people at the helm is critical. And, as your number one choice of accountant near me in Medway, we’ve outlined some of the most important things you need to know about the officers of an LTD as follows to help.
Who are the Officers of an LTD Company?
The officers of an LTD company play a vitally important role in many aspects of the business’s day-to-day operations – although it is crucial to consider here that the exact definition of an officer can be a little hard to clarify. For the purposes of this guide, though, we’ll be focusing primarily on secretaries and directors as officers.
Secretaries
First of all, let’s take a look at the secretary for a company. A company secretary is someone who is usually appointed to help with managing the company’s registers, although there is not actually a specific definition for what a company secretary must do under the Companies Act. As such, secretaries tend to have a relatively high level of freedom in terms of their responsibilities – providing they adhere to their contract requirements, of course.
A company secretary’s most obvious responsibility is informing Companies House of any changes relating to the company and ensuring that all registers are updated and managed accurately. Moreover, secretaries are usually tasked with filing tax returns, paying corporation tax, and many other aspects of the business’s day-to-day running, such as scheduling meetings for the board members and potentially compiling the minutes of meetings.
While the secretary is responsible for ensuring that these are arranged and managed, the final remit and responsibility for ensuring they are completed falls on the company director. As such, company directors need to keep a close eye on secretary activities to make sure key requirements are met in a timely manner.
LTD company – Directors
Now that we’ve clarified the core responsibilities for company secretaries, it’s next important that we look at the role of directors in the company. A company director has a significant influence over the business’s running and must also adhere to seven key responsibilities as per the Companies Act 2006. There are as follows:
- Act within their powers (as defined by the firm’s Articles of Association)
- Exercise independent judgement and decision making
- Declare any interests personally in discussions, arrangements, or transaction
- Work to reduce the chances of conflicts of interest occurring in the business
- Exercise reasonable diligence, care, and skill in all aspects of business
- Prevent or decline any benefits from third parties in relation to their directorship or the firm
- Work to encourage the company’s success overall
These core requirements are often expanded upon further by the contract drawn up for the director. However, directors generally have the overarching responsibility of ensuring that the limited company continues to operate smoothly and with a focus on achieving its core goals and objectives.
Who Can Be an Officer of a Company?
At this point, we’ve outlined some of the key things you need to know about the officers of a limited company. But who is actually eligible to be an officer? Well, there are several requirements that an individual will need to meet to qualify from running for a company officer.
First of all, company officers must be at least sixteen years of age. Thereafter, the individual applying for the role of company officer must not be the auditor for the firm and should not have been disqualified from standing as a director. In addition, they must not be an undischarged bankrupt. However, company officers are able to live anywhere in the world, generally speaking, provided that the LTD company itself has a registered address in the UK.
As per the definitions of a company director or secretary, there is no guarantee that shareholders, guarantors, and people with significant control to also be company officers. However, it is notable here that shareholders may potentially also be a secretary or director for the firm.
Does a Company Secretary or Director Need Specific Qualifications?
Many people assume that a company secretary or director needs specific qualifications in order to hold the office. However, this isn’t entirely true, and in reality, they simply need to be suitably equipped for the role.
Most notably, the Companies Act 2006 has definitions for secretary positions. The secretary must have the requisite knowledge and experience to be able to fulfil the role responsibly and reliably and must have at least one or more qualifications from a predefined list of requirements. Your legal advisor should be able to give you more information on these.
Are Director and Secretary Details on Companies House?
As an officer for a company, there are several different pieces of personal information that will be listed on Companies House following the individual’s appointment. These include the person’s name, month and year of birth, correspondence (service) address, appointment date, role, nationality, country of residence, number of appointments held, and occupation.
Can an Officer Be Changed?
While limited companies should always take every necessary step to ensure that the correct officers are in place, mistakes sometimes happen, or issues can arise between officers down the line. In accordance with this, if it becomes necessary to change or remove an officer, this is possible.
Generally speaking, a director or secretary will resign once they are ready to give up their position. However, it is also possible to issue a termination of appointment for a director or secretary, although the firm may need to get professional advice in order to do so.
Who are the Officers of an LTD Company – Final Thoughts
Every business is unique and has particular requirements when it comes to operations. In line with this, the officers every firm needs will vary to an extent. With that being said, knowing the main types of officers that each business needs is often incredibly helpful, and so this is something that’s important to keep in mind when deciding on your own approach to business management.
Fortunately, our experts here at LiderTax know a thing or two when running a limited company. So, if you have any questions about your company’s tax management or structure, please don’t hesitate to get in touch with us today. As your number one choice of accountant near me in Medway, we’re here to help!