42 law


Warning to directors over impact of failing to file company accounts


Directors are being warned that Companies House is increasingly taking a tougher line when it comes to pursuing prosecutions for the late filing of company accounts


Simon Carroll, senior associate in the litigation and dispute resolution team at leading Buckinghamshire law firm B P Collins LLP, says he has been aware of three recent cases and says many directors don’t realise the potential personal impact of such action.


“There’s no doubt that in the past six to 12 months we have begun to see increased prosecutorial activity by Companies House,” he said. “These offences for late filing of accounts are not new, but we are seeing them being enforced to a much greater extent.


“Cases can be prosecuted in the Magistrate Court and, if convicted, defendants can face a fine of up to £5,000, as well as being left with a criminal record. That can cause real problems and be hugely prohibitive, particularly for those


directors who travel regularly to some destinations, such as the US.


“Not only that, but from April this year, magistrates were given unlimited sentencing powers, so potential sentences could now be higher.”


Section 441 of the Companies Act 2006 obliges companies to file accounts or reports for each financial year, and section 451 provides that if they are not filed on time, every director in the company at the end of that period is treated as having committed a criminal offence.


Carroll says directors cannot simply use the excuse that the work of submitting the accounts had been contracted out to external providers, such as an accountant; and says that showing


Aylesbury-based notary public signs 1,000th client


James Couzens, Aylesbury-based notary public, has signed his 1,000th client since starting his practice in 2009.


A notary public is a specially-trained legal expert who helps businesses trading overseas. The notary’s independent verification of documents, facts and transactions is universally accepted by authorities in most countries around the world.


Couzens said: “I have dealt with many international jurisdictions over the past few years and my 1,000th client is a company looking to increase export markets in an interesting region, part of the former USSR.


“As part of the company’s growth plans, it needed to appoint an agent to register its products for sale in Kazakhstan.”


Kazakhstan is the founder and largest member of the Eurasian Economic Union (EEU), a relatively new alliance officially launched in January 2015. It is designed


www.businessmag.co.uk


to achieve closer cooperation with increased economic links between member countries Belarus, Armenia, Kyrgyzstan, Kazakhstan, all previously part of the USSR, and Russia itself.


Although the EEU faces many political and economic difficulties before it can achieve its goal of a single financial market by 2025, Couzens thinks that targeting this market is shrewd, as it gives access not only to the EEU market with a population of 170 million, but also to cross-border trade with 12 Russian regions bordering Kazakhstan.


Couzens has experience of dealing with legal, tax and governmental authorities in many countries. His experience and knowledge of the different approaches and processes which characterise different jurisdictions can be very helpful, sometimes crucial, in ensuring transactions complete successfully first time.


Details: www.aylesburynotary.co.uk


accounts were prepared before the deadline is not enough to stop, or successfully defeat a prosecution.


“As a director, you need to be aware of the risks and take personal responsibility for making sure deadlines are met. You should also make sure your accountant understands the full extent of personal liability that you will be taking on if the accounts are filed late,” he continued.


Carroll says that if using an outside supplier it’s important to ensure all the necessary information is supplied in plenty of time. He recommends diarising relevant dates and, as the deadline approaches, making regular checks to ensure the processes are well under way.


If the worst happens and the


Leading the way on gender equality


Reading-based solicitors firm Blandy & Blandy has a longstanding history of nurturing and supporting the careers of female colleagues.


Following the recent appointment of two new partners, eight of the firm’s 17 partners will be female, a flagship balance the firm is committed to maintaining.


This 44% female to male ratio is even more significant as the Chambers Student Guide’s 2014 gender diversity survey showed that women comprise just 26% of the partnership at an average national or regional law firm in the UK.


86% of respondents to a Law Society survey carried out in 2012 agreed that flexible working practices are a critical factor in helping more women reach senior roles.


Many of the firm’s female partners and associates trained at the firm and have developed their careers with the support of colleagues at Blandy & Blandy. The firm offers


Partner Debbie Brett who trained at Blandy’s and has "been here for all of my legal life"


flexible working arrangements and actively encourages a good work-life balance.


Of the five colleagues recently promoted by the firm to partner or associate level, four are women. New partner Claire Dyer and colleagues Siobhan Baillie and Jessica Reid were cited in this year’s legal directories – impressive as entries typically focus heavily on partners.


In addition, the firm’s four trainee solicitors are all female as are 40% of the firm’s management team.


Details: www.blandy.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – JULY/AUGUST 2015


deadline has been missed, he says the prosecution team at Companies House will usually send out warning letters pointing out the likelihood of prosecution.


“If there is a problem, it is still best to complete and submit the accounts as soon as possible,” he concluded. “The offence is for late filing, so if you are prosecuted, unless you can satisfy the defence and show you took all reasonable steps to get the accounts submitted on time – which can be case and fact sensitive – it is likely that you will be found guilty and receive a fine and a criminal record.”


Anyone who thinks they may be facing a potential prosecution, can speak to Carroll for expert advice.


Details: Simon Carroll 01753-279042 simon.carroll@bpcollins.co.uk www.bpcollins.co.uk


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