Importance of maintaining company records
Small businesses face a near impossible task at times balancing the necessity to ensure revenues exceed overheads and in dealing with business red tape. It can be very difficult to assess priorities in terms of what is essential compliance wise. Often, corporate filings and company records can inadvertently slip down the list of “to do’s”, but it is important, and doesn’t take any appreciable time, to at least keep the register of shareholders up-to-date. There can be significant and unforeseen consequences of failing to do so, if there is a change and the new shareholders details are not promptly recorded.
The implications of failing to properly record a change in shareholdings can include :-
- notices of meetings may be invalid
- Decisions made at shareholder meetings may not be valid and legal
These are clearly important parts of running a limited company, so it pays to ensure company records are kept up-to-date and thankfully, this is not a particularly time consuming task.