Keeping Adequate Company Records
Under the Companies Act 2006, a company is required by law to keep:
- records about the company itself; and
- financial and accounting records.
- Records about the Company Itself
To comply with legislation, you must keep details of:
- directors, shareholders and company secretaries;
- directors’ meetings;
- the results of any shareholder votes and resolutions;
- promises for the repayment of loans by the company at a specific date in the future and who such loans must be paid back to;
- indemnities made by the company;
- transactions involving the purchase of company shares; and
- loans or mortgages secured against the company’s assets.
Financial and Accounting Records
In addition to keeping records about the company itself, you must also keep thorough accounting records. Such records must include details of:
- all money the company receives and spends;
- assets owned by the company;
- debts that the company owes;
- debts that the company is owed;
- stock the company owns at the end of the financial year;
- the stocktakings used in order calculate the stock figure; and
- all goods bought and sold; and who they were bought and sold to and from (unless the company is a retail business).
- If you fail to keep adequate accounting records, you can be fined £3,000 by HM Revenue & Customs, or even "Company director disqualification" disqualified from being a company director.
The consequences of failing to comply with companies’ legislation can be severe. If you require further advice or assistance on any aspect of compliance, please contact us at email@example.com or on 02920 345511.