There are many benefits of having a public limited company, from showing a level of financial strength to your clients and competitors to demonstrating your company’s commitment to meeting the most stringent of standards. Here, leading provider of PLC company secretary services London Registrars (http://www.london-registrars.co.uk/) looks at how outsourcing this role can aid a PLC.
In addition to the prestigious weight behind becoming a PLC, a publicly limited company has access to capital markets and has the ability to offer shares in their company to the public. In order to register as a PLC, a share capital of £50,000 or €65,600 has to be issued and two directors must be nominated (although the directors can also be the company’s members).
In order to comply with the Companies Act, the PLC must appoint a company secretary. The functions of a PLC company secretary include managing board meetings, preparing and presenting reports and taking minutes of the meetings, as well as ensuring that important shareholders attend the General Meetings and Annual General Meetings (or their appointed proxy member in the case of their absence). Over and above that, a PLC company secretary may be called upon to provide corporate governance consultancy: helping the board with effective decision-making, advising board members of their responsibilities and setting strategic and fiscal goals.
Given the complexity of the company secretary function, many publicly limited companies choose to outsource this role to a third party company which specialises in this ever-changing field, such as legal and corporate support firm London Registrars. Outsourcing this function, whether full-time or on an ad-hoc basis, provides the PLC with peace of mind that it is fulfilling all legal requirements and that the company is focused on strategic growth and financial success; in effect fulfilling both a compliance and business development role.