Although shareholders own a limited company, they don’t undertake the day to day running of the company; that’s the responsibility of the company directors. All limited companies must have at least one company director. Directors are responsible for a number of areas such as health and safety, tax and employment law. Directors are also responsible for a number of documents being submitted to Companies House in a timely manner, or risk receiving penalties. A company director must act in a way which will promote success of the company, according to the Companies Act 2006.
If a business has a company secretary, company directors may delegate responsibility for completion and submission of specified documents to the company secretary. However, the responsibility ultimately lies with the company directors. Certain documents have to be completed and submitted to Companies House, which includes annual company accounts and a yearly return. Other duties include the notification of a change in Registered Office address, changes to company officers or their personal information, the allocation of shares and registered charges.
In addition to the duties relating to Companies House, company directors have other obligations to the company. Employment law must be adhered to, including any changes, in order to avoid claims for unfair dismissal or discrimination among others. If the company has more than five employees, a health and safety policy must be put in place and documented. The payment of income tax, National Insurance and VAT are all the responsibility of company directors, who should ensure that the correct amount is paid in a timely manner.
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