Keeping your new company on track

The previous five articles in this six-part series have focused on the various company structure options open to the small business owner.

Clearly, the best business structure for asset protection, tax minimisation, name-protection and overall credibility is the limited liability company. Here we discuss some of the necessary tasks or statutory obligations that must be performed by directors of a limited liability company to comply with the Companies Act 1993.

If the IRD or any other Government agency audits a company, it may request to see certain company documents.

Company directors cannot claim ignorance as a defence for not having them immediately available and up to date.

Share register

A company must maintain a share register that records the shares issued by the company.

The share register must include an alphabetical list of the names and last known address of past and present shareholders in the last decade, the number of shares held and the date they were issued.

Accounting records

The accounting records must correctly record and explain the company's transactions.

Company records

There are certain records a company must keep at its registered office. These include the company's constitution and minutes of all meetings held within the last seven years and the share register.

For the full list visit the website listed at the end of this article.

Company locations

Every company must have a registered office and an address for service in New Zealand. Address changes must be notified to the Registrar of Companies.

Particulars of directors

Any change in the directors of a company or particulars relating to the directors must be notified to the Registrar of Companies.

Annual meeting

Every company must hold a meeting of shareholders once a year.

Appointment of auditors

At each annual meeting, a company must appoint an auditor to hold office until the next annual meeting, unless a unanimous resolution stipulates an auditor is not necessary.

Annual return

All companies are required to file an annual return to the Registrar of Companies in their designated month.

* Glenn Smith runs a company formation business.