Despite fierce opposition from the ICSA Part 12 of the Companies Act 2006 was enacted to allow private limited companies formed after 6 April 2008 to dispense with the services of a dedicated company secretary-whether this is prudent is another question however.
Unless existing directors wish to take on extra responsibilities gratis the cost savings of dispensing with a dedicated company secretary may be negated or diminished. In any event many directors may begrudge the idea of taking on extra responsibilities which in turn would lead to increased scope of personal liability.
Experience, skills and care are other key considerations so that whilst it may seem attractive to do away with a post to save on costs the fact remains that the essential legal and admin responsibilities remain in tact so that unless the duties can be handed out to existing individuals with requisite skills and experience there may not be anyone in the company appropriate to carry out the role professionally.
Accordingly handing out the role to someone unsuitable will only lead to increased fees and fines through increased risks and poor maladministration and could in the end be a false economy.
