The Company Director's Desktop Guide

The Company Director’s Desktop Guide is an indispensable source of reference on all areas of company law and practice for directors in every type of organisation. It provides essential, practical, jargon-free guidance on every aspect of a director’s duties drawn from the author’s considerable experience. Directors and managers are confronted with rapidly changing and increasing legislative requirements – at last count British companies were subject to some 22,000 different statutes. Remaining fully conversant with all the obligations, responsibilities and liabilities demanded under Company – and all the other – laws can therefore be a struggle for even the most diligent director or company secretary. This book explains those responsibilities and obligations in clear terms, emphasising what the law means in practice, how to implement it and how best to minimise risk and avoid potential penalties. As well as being completely revised and updated, the 15th edition of this popular title now includes new and detailed guidance on practical aspects of: ● New obligations under Corporate Governance requirements – some of which are proposed to apply to `large’ LTDs ● Extension of employers’ liability for employees’ outlawed acts (attacking a customer, leaking private data, committing fraud etc.) ● Extension of directors’ liability where failed company’s pension fund is in deficit ● Guidance to new/revised legislative requirements for Board meetings ● Greater transparency re directors pay and proposed usage of multiplier of average shop floor rates ● Home Office guidance re anti-slavery policies ● Practical affect of the General Data Protection Regulation ● Directors required to retain shares even after leaving their companies ● Holding virtual General Meetings – and the resistance to this ● Guidance re several types of work relationships – and rights ● Bereavement leave ● Updated figures for employee awards and payments ... and much more.

Table of Contents:
About the author ...........................................................................iii Icons ..............................................................................................iv Abbreviations.................................................................................iv Company classification ...................................................................v Compensation and Employment Rights.........................................vi Service Rights:Qualification Periods............................................viii Approach .......................................................................................ix STOP PRESS!..................................................................................ix Introduction 1 Background.....................................................................................2 Widespread lack of awareness........................................................2 Personal liability..............................................................................3 Practical help ..................................................................................4 1. The nature of the beast 7 How did we get here?.....................................................................8 What is a company .......................................................................13 Formation ....................................................................................14 Re-Registration..............................................................................14 The Veil of Incorporation..............................................................15 What is a `Director’ .......................................................................18 A Director’s exposure ...................................................................20 Appointment – First principles.....................................................21 Joining the throng.........................................................................26 Constitution – Aims and purpose..................................................29 Internal obligations.......................................................................31 Rolling the message out................................................................31 2. A rose by any other name 33 A director is a director..................................................................34 Descriptions..................................................................................36 De Facto or Shadow? ....................................................................49 Disclosure of Persons of Significant Control ................................49 Courtesy titles...............................................................................53 Duties............................................................................................55 10 `commandments’ for directors.................................................65 Appraisal .......................................................................................72 3. Scaling the peak 75 Eligibility for appointment............................................................76 Appointment of a Director .........................................................78 Notification of interests................................................................81 Status – officer or officer and employee?......................................85 The service contract ....................................................................89 Remuneration ...............................................................................91 The dual relationship....................................................................92 4. Board members – and others – beware 101 Our litigious society....................................................................102 Personal liability for statements..................................................103 Areas of exposure .......................................................................104 Employment obligations ............................................................106 Commercial requirements .........................................................108 The Enterprise Act 2002 ............................................................113 The Insolvency Act ....................................................................114 Operating in – and saving – the environment ............................122 5. The risk business 131 The requirement to take risk ......................................................132 Contingency planning.................................................................133 Risk prevention planning............................................................136 What do you do?.........................................................................139 Suggested areas of attention ......................................................139 Bribery and Slavery.....................................................................142 Gender Pay reporting..................................................................145 Tax evasion .................................................................................147 Safety...........................................................................................148 Corporate Manslaughter.............................................................157 Stress...........................................................................................160 Risk transference ........................................................................167 6. `Ill met’ – without method 169 Determining the aims of Board Meetings...................................170 Agendas.......................................................................................173 Dynamic Agendas........................................................................174 Timetable ....................................................................................178 Aims............................................................................................180 Interested parties........................................................................185 The effective meeting .................................................................186 7. A meeting’s two key players – The Chairman and Secretary 191 Key players .................................................................................192 General responsibilities of the Chairman ...................................192 Progressing the meeting ............................................................194 Controlling the members............................................................195 Motivating members...................................................................196 The role of the Company Secretary............................................201 Responsibilities ..........................................................................205 Before and at Board Meetings.....................................................208 Remote meetings........................................................................209 8. Board without boredom 211 General preparation ...................................................................212 Preparing effective reports.........................................................213 Presentations ..............................................................................215 Planning ......................................................................................219 Appointing subcommittees.........................................................221 Minutes – principles...................................................................223 Minutes – an example.......................................... 9. An inspector calls 237 General requirements to create and protect records .................238 External authorities ....................................................................240 Control........................................................................................245 Controlling exercise of authority ...............................................246 Theft’s vicious circle...................................................................254 Controlling expenses..................................................................256 Directors’ loans...........................................................................258 Auditors ......................................................................................259 Enhanced penalties.....................................................................266 10. Setting an example 267 Ethical behaviour........................................................................268 Gifts – the `if in doubt:shout’rule...............................................273 Confidentiality undertaking ........................................................275 Non-competition clauses............................................................278 Other security aspects................................................................281 Electronic transmissions.............................................................284 Social Media sites........................................................................291 Controlling other risks................................................................293 Insider dealing rules ...................................................................295 Share trading...............................................................................300 11. `He who communicates leads’ 303 Distinguishing between leadership and management................304 Leadership qualities....................................................................305 Maximising the human resource ................................................310 Communication principles.........................................................317 Briefings......................................................................................320 12. Meeting the owners 331 The Annual General Meeting ......................................................332 Briefing the Chairman.................................................................341 Minutes.......................................................................................343 Extraordinary General Meetings.................................................346 Resolutions .................................................................................347 Proxy...........................................................................................350 13. `Write a better book’ 351 The Annual Report......................................................................352 Determining the target audiences ..............................................354 Filing the document....................................................................355 Range of content ........................................................................356 A timetable for action .................................................................360 The Chairman’s Statement..........................................................363 Ownership..................................................................................368 Corporate social responsibility ...................................................369 Examining the issues ..................................................................372 Human Capital Management.......................................................373 Other documentation .................................................................374 14. No such thing as bad publicity? 377 Who do we serve?.......................................................................378 Devising and using media releases ............................................383 Media interviews ........................................................................385 Communication aspects of crisis reaction..................................389 15. Managing the property assets 395 Introduction................................................................................396 Types of occupation ...................................................................396 Marriage of interests...................................................................398 The A-Z of property attention.....................................................398 The future – remote working .....................................................410 Extending the working age.........................................................413 16. `A personal viewpoint’ 415 The 4 key employment`abilities’................................................416 Pro-active recruitment ................................................................422 Parental rights.............................................................................424 Adoptive parents.........................................................................433 Unpaid parental leave .................................................................434 Family emergency leave..............................................................435 Bereavement leave......................................................................436 Flexible working .........................................................................437 Training.......................................................................................440 Apprentices.................................................................................441 Public duties ...............................................................................443 Avoiding age discrimination .......................................................445 The new work dimension...........................................................447 17. `Comparability and consultation’ 449 Comparability .............................................................................450 Part-time workers........................................................................450 Fixed term employees ................................................................451 Temporary personnel .................................................................452 Transferring employees ..............................................................454 Reducing employment costs ......................................................460 Consultability..............................................................................467 Formal consultation....................................................................469 Discipline and dismissal..............................................................475 Dignity at Work ...........................................................................479 Retention ability .........................................................................489 18. `Directing now’ 493 Corporate governance ...............................................................494 The future?..................................................................................497 Payment of Directors..................................................................499 Relationships...............................................................................517 Working time/personal time balance .........................................519 A sting in the tail? .......................................................................520 Appendices 523 Appendix I:Types of companies.................................................524 Appendix II:Types of shares.......................................................530 Appendix III: Possible additional clauses for LTD’s Articles........532 Appendix IV:Who is liable? ........................................................533 Appendix V: Bibliography............................................................534 Cases...........................................................................................535

About the Author :
David M Martin, FCIS, FCIPD, FloD is a Fellow of the Chartered Institute of Secretaries, the Chartered Institute of Personnel and Development and the Institute of Directors. He held senior positions with Xerox (USA) and SGB Group Plc, and was Director/Company Secretary of Maynards Plc where as well as the full range of the usual corporate duties he designed one of the first employee share ownership schemes, implemented a Group wide system of Consultative Committees and compiled employee reports, annual reports and employee newsletters, several of which won national awards. For over 30 years he has run his own business consultancy – Buddenbrook – carrying out various projects including corporate and internal communications, general administration and personnel documentation, etc., for a wide range of client companies including Filofax, British Aerospace, Safeway, Northern Foods, Boots, Cadbury and others. He is a regular seminar and conference speaker on company and employment law throughout the UK, and has written over 60 business books. The `clear communication’ themes of many of his seminars are reflected in his books, many of which (including the international bestselling Tough Talking, Tough Telephoning and Manipulating Meetings) have been translated into several foreign languages as well as being available in all English speaking markets in the world. He was the series editor for ICSA’s One Stop series for which he wrote several titles. His books, The A-Z of Facilities and Property Administration (3rd edition – 2012), The A-Z of Employment Practice (12th edition – Summer 2019) and The Instant Company Secretary (2018) are all published by Thorogood. He was a CBI representative on the panel of Employment Tribunal members for over 20 years; a member of the Registrar of Companies Wider Users committee and was involved in the consultation process drafting the Companies Act 2006, and the new Register of Persons of Significant Control.