P9. Maintenance of records

Question 1

What is CREST?

Answer 1

The electronic settlement system used by UK regulated markets, which enables digital settlement of securities, including delivery of the shares being traded

Question 2

What is ‘the section 808 register’

Answer 2

A register listing the enquiries of a company to members, asking them to disclose the beneficial ownership of the shares

Question 3

Which 5 registers can be held on central register?

Answer 3

Directors
Res addresses
Secretaries
PSC
Members

Question 4

Which stat records cannot be held at the SAIL address?

Answer 4

Members and directors minutes and resolutions

Question 5

Who can inspect records and registers without charge?

Answer 5

Members

Question 6

What is due notice required for a person to inspect records of private co

Answer 6

2WD if within period of general meeting or circulation of WR, or at least 10WD in other cases

Question 7

Is notice required for inspection of public co records?

Answer 7

No

Question 8

When can a company deny a request for records/registers?

Answer 8

If it thinks it is not being made for a proper purpose

Question 9

How long must minutes be kept?

Answer 9

10 years minimum

Question 10

Companies must maintain financial records sufficient to… (3)

Answer 10

Show and explain company transactions
Disclose with reasonable accuracy the financial position of the company
Enable directors to prepare accounts and financial statements required by the act

Question 11

For how long must financial records be kept

Answer 11

6 years public co
3 years private co (though often kept for 6 as HMRC can investigate tax affairs up to 6 years after return)

Question 12

7 types of docs which must be available for inspection by members

Answer 12

Directors’ service contracts
Directors’ indemnities
Members minutes
Accounting records
Contracts for purchase of own shares
Documents for purchases out of capital
Report of investigation into interests in shares

Question 13

What must requests for registers of members include? (3)

Answer 13

The identity of the person making the request
The purpose for which they require the info
Whether the information will be disclosed to other persons, and if so, their details and purpose

Question 14

How can a company reject a request for registers if made properly?

Answer 14

If it does not believe it is being made for a proper purpose, by applying to court within 5 days