The register of directors’ interests in shares and debentures is a record of the extent to which the directors have invested personal wealth in the company and their dealing in securities, a matter which is of obvious interest to other shareholders. Interests of directors’ spouses and their infant children are covered. Shadow directors are included. Interest in this context includes:
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Interest under a trust
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Interest owned by a company in which the director owns one-third of the voting rights, and
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Entitlement to exercise any rights in shares.
Both acquisitions and disposals by sale or assignment have to be recorded. The exercise by directors of rights such as share options must be included. It is the directors’ duty to supply all the relevant information. The company must record it in the register within three working days.
Copies of the register of directors’ interests once again must be sent within ten days if requested. Maximum fees are as for the register of members. The register of directors’ interests may be kept either at the company’s registered office or where the register of member is located, if different. The company must give notice to the Registrar of the place where the register is kept if not the company’s registered address. The register must be available at the Annual General Meeting (AGM).
Canterbury Accountancy - Helping small businesses to understand their statutory obligations.
