By starting a company is necessary to set up roles and responsibilities. Usually a new company does not have necessarily many employees, but there are certain roles that while growing up your company you need to develop.
Following a funnel of role and responsibility, the bigger a company becomes, the more roles and duties are needed. Each position has its own duties which they must perform. The performance of every single role must be briefed to the superior role to end at the board of directors or in an annual general meeting with the Stakeholders.
The necessary roles that a company needs are company director, shareholders and company secretary. The bigger the company grows the more roles will be generated.
Company directors participate and influence the day to day activities in the company.
Their duties are to promote the goodwill of company and take decisions which must lead to successfully reach the forecast, using their powers to enhance the performance of the company.
Directors of the company are in the charge to make the company successful and give the maximum benefit to the shareholders of the company.
In nutshell below is the list of some important responsibilities which a company director must fulfil in the United Kingdom.
Responsibilities of Company Directors summary
• Decision Maker – defining strategies, policies, solving issues and executing regarding every sector and field of the business.
• Company Representative – Communicator role, public image of the company for press releases and interviews.
• Company’s day-to-day operations.
• Reach forecast and Increase Company’s profit.
Shareholders are financial investors of the company; they may be the owners of the company or own some portion of it. Shareholders do not have the responsibility to participate in the day to day activities of the company. Shareholder’s responsibility is to submit vote annually to choose the Board of Directors.
By choosing the Directors they take responsibility on the performance of the company, shall the Director or directors not fulfil the forecasted expectations, shareholders have the authority to change the Directors annually. They are also authorized to check the company records & other documents.
Responsibilities of Shareholders summary
• Choose the CEO or Directors of the company.
• Remove or not renew a CEO or Director if unsatisfied with company’s performance.
• Access and review the Company’s records and documents.
Secretary of the company
The secretary of the company is the person who administers the tasks of the company with other employees, his main duty is to check and ensure that company is meeting all the laws and regulations set by the government for the company. A private company doesn’t need the company secretary by law, but if they wish they can hire the secretary for the company. Below are the responsibilities of a company secretary which he or she generally fulfils in the company.
Responsibilities of Secretary summary
• Arrange meetings with Shareholders – organization of agenda, invitations, etc.
• Maintaining the company’s statutory registers and registered office.
• Ensure that the company is following all the rules and regulations set by the government.
• Company’s record books – managing and storing the company’s records, such as investments, payroll, insurance, accounting, taxation, etc.
• Legal – advising the board of directors on their legal and corporate responsibilities and matters of corporate governance to ensure company compliance with legal obligations.
The above roles and responsibilities for the company directors, stakeholders, and secretary are not limited to this, but there are many other responsibilities for the above positions.