Yesterday’s post discussed the point in the company formation process when a partnership strategy should be considered. Today we will review the different types of partnership models, their relative values and how to set one up.

In the partnership model, all partners equally share the financial costs and responsibilities of being in business. All partners are normally registered as self-employed and take a share of the profits. However, what share of profit each partner takes and their relative role in managing the business and personal responsibility for debt, depends on the type of partnership model a recently formed company decides to choose;

Ordinary
All partners share financial liability and profits equally. Equal responability is also taken for the day to day management of the business and future growth and development..

Limited
In a Limited partnership, partners accept limited financial liability relative to the amount they have invested. Tough profits are shared equally and usually Limited Partners have no role in the day to day management of the business.

When you make the decision to form a company, there are a number of choices you have to make. However, one of the most important of these choices is whether you should form your company alone or go into partnership with others. It is this decision that the success and future growth of the business is contingent. If you are consider forming a business partnership with a colleague or friend, there are a number of legal issues and implications which you need to address before you begin to trade.

One of the many reasons why people begin the company formation process is to become their own boss. However, with this independence comes great personal and financial responsibility. In a business partnership, though full control is relinquished, financial responsibility is shared. A partner or partner could also inject fresh capital, along with different skills and ideas, all of which could facilitate business growth and expansion.

Should you decide to embark on a business partnership, there are still decisions to be made. Namely, if you should you go for a limited or ordinary partnership – the relative value in both of these options will be considered in another post. However, crucially at this stage, you need to establish how you wish to integrate the partnership model into your business, and consider the following:

-A partner and partners’ relative ability to progress the business
-The various skills and abilities they will bring to the business
-A partner and partners’ previous experience .

Yesterday’s blog concentrated on the role of the Company Director post company formation. Today, we are going to consider the roles and responsibilities of the Company Secretary. Historically, all limited companies must appoint a company secretary at the point of company formation. However, due to rules stipulated in The Companies Act, since April 2008, companies are no longer required by law to have a company secretary. Indeed, they can now operate, post company formation, with a sole director.

Responsibilities
Traditionally, the role of Company Secretary is one of administration.  Though the roles and responsibilities of the company secretary are not codified by law and will vary according to the size of the business, there are several activities that the company secretary would usually manage;

-  Registered Office
A crucial point of the company formation process, is registering an address for your business. This address must appear on all company stationary and be made available on all literature. It is the Company Secretary who manages this.

- Company Meetings
Once the company formation process is complete, your company will begin to meet to discuss the activities of the business and how you will move forward. Traditionally the company secretary arranges company meetings and keeps a record of actions and points discussed.

- Companies House
Historically, the company secretary manages the relationship between your business and Companies House. They carry out the below activities:

Submission of Annual Returns
Submission of Annual accounts
Notifying Companies House of changes to company director details, registered office or share structure.

Once you have registered your company the next step in the company formation process is appointing your Company Officers. Company’s officers are appointed members of the company who are formally named as Company Director and Company Secretary in the Articles of Association. The role of the Company Secretary will be considered in a future post, however, for now we will review the role of Company Director, the conditions of appointment and Company Director’s responsibilities.

As stated in the Articles of Association, to comply with company formation legal requirements, Company Directors must be appointed at the point of company formation and their names and personal addresses detailing in the company registration documents It is a legal requirement for company officers to be in place at all times and for their names and current addresses to be written on the registration documents

Company Directors
The Company Director is responsible for ensuring that the company conducts itself in accordance to what was stated in the Articles of Association. Though the Companies Act offers no definitive list of what a Company Director’s responsibilities are, the roles outlined below are commonly thought fall under the jurisdiction of Director’s responsibility:

-Manage a Companies accounts
-File annual returns with Companies House
-Inform Companies House of a change of directors or secretaries
-Notice of change of registered office

Though there are no formal requirements for being a company director, there are a couple of restrictions. You cannot hold a directorship if:

-You are an undischarged bankrupt
-You have been prohibited by a court from holding a directorship
-You are under 16