Submitted by: Submitted by wjmeyer
Views: 602
Words: 1098
Pages: 5
Category: Business and Industry
Date Submitted: 04/01/2011 07:06 PM
Records a business must keep
A company must keep and maintain a variety of documents at its registered office.
Some of that information must also be recorded and maintained with the Companies Office.
* Share register
* Issue of shares
* Distributions to shareholders
* Financial statements (accounting records)
* Security interests
* Annual general meeting (AGM) minutes
* Annual returns
* Adopt, alter or revoke a constitution
* Address for records
* Filing of documents
Many small businesses choose to have their accountant, solicitor or business advisor hold and maintain these records for them.
Share register
A company must maintain a share register that records the shares issued by the company and states:
* whether there are any restrictions or limitations on their transfer
* where any document that contains the restrictions or limitations may be inspected
The share register must also record an alphabetical list of the:
* name(s)
* last known address
* number of shares held
for all current shareholders and those that have been shareholders within the last ten years.
The register must also show the date of share issues, repurchases or redemptions and share transfers.
An agent (such as a professional share registry) may maintain the share register of the company.
Distributions to shareholders
The board of a company may authorise a distribution by the company at any time, of any amount and to any shareholders it sees fit. But before doing so it must:
* be satisfied, on reasonable grounds, that the company will be able to satisfy the solvency test immediately after the distribution; and
* ensure that it does not breach section 53 of the Companies Act 1993, or any provision in its constitution relating to the distributions.
Directors who vote in favour of a distribution must sign a certificate stating that the company can satisfy the solvency test and give the grounds for...