1 April, 2020
Covid-19 – Companies House and HMRC Stamp Office
This update contains a summary of the services that have been revised or temporarily modified by the Government as a result of the implementation of the Stay at Home measures due to the Covid-19 pandemic.New provisions are continually being introduced. Please check the relevant authority for the current status.
Filing documents at Companies House
Most documents and forms can be filed online using Companies House existing online services such as WebFiling. For those documents and forms that cannot currently be filed online, Companies House is working to enable customers to upload all documents and make payment when necessary.
Public access and delivery of documents to Companies House
There are a number of restrictions to public access in all offices and to the delivery of paper documents. There are also delays in processing paper forms.
The Belfast, Edinburgh and London offices are currently all closed to the public. Paper documents can be delivered to the Belfast and Edinburgh offices, but no receipts or proof of delivery will be sent out.
There are no letterbox facilities at the London office. All mail must be sent directly to the Cardiff office: Companies House, Crown Way, Cardiff CF14 3UZ.
The telephone contact centre is closed. All enquiries should be emailed to email@example.com.
Same day services
Same day incorporation and re-registration services have been suspended until further notice.
Filing accounts online
Certain types of accounts can now be filed online. This can be done using the Company authentication code sent out by Companies House. Alternatively, full or abridged accounts can be filed using the CH- HMRC joint filing service or using third party software. Details of the software providers can be found on the Companies House website.
Accounts that can be filed online include - micro entity accounts, abridged accounts, full accounts and
dormant accounts. Accounts for charities or public limited companies cannot be filed online.
Late filing of accounts
If a company is affected by COVID-19 and therefore unable to file its statutory accounts by the filing deadline, provided the filing deadline has not been passed a company can apply for an automatic and immediate three-month extension to file its accounts. To apply for an extension online a company number must be provided, together with information about why more time is needed and any other supporting documents (optional). A late filing penalty will not be issued if the application is approved and the accounts are filed before the extended deadline.
If accounts are filed late, an automatic penalty will be imposed. The penalty can be paid by BACS (www.gov.uk/government/publications/late-filing-penalties#paying-your-penalty).
Submission of certain forms
SR01 Form - (Application under S1088 by an individual to make an address unavailable for public inspection). The quickest way to ensure this application is processed is to send the SR01 Form by email to Companies House. The original completed SR01 Form and a cheque(£55 per document listed) should also be sent by post Companies House.
Applications for protection – (Sections 243, 790ZF and 790ZG of the Companies Act 2006) - Paper applications to restrict the disclosure of personal information have been suspended. Applications should be made online to protect details from being disclosed on the Companies House public register.
SH03 Form – (Return for the purchase of shares). Companies House is accepting unstamped SH03 Forms online if accompanied by a letter from HMRC confirming the email application process has been used.
Court orders - Companies House continues to accept and register court orders sanctioning schemes of arrangement which are accompanied by a letter from HMRC confirming that the correct duty has been paid or confirming that no duties are payable.
Transfer of shares – payment of stamp duty
The HMRC Stamp Office is currently closed. Stock transfer forms can be emailed, and payments made online to (Sort code 08 32 10, Account number 12001098, Account name; HMRC Birmingham Stamp Office). A reference should be provided when making payment - your name followed by the payment amount e.g.: JBrown/240. After payment of stamp duty has been sent to HMRC the following details must be emailed to firstname.lastname@example.org
The email should include the payment reference, amount and date of payment together with a pdf copy of either the signed and dated stock transfer form, the instrument of transfer or form SH03 (Return of purchase of shares).
HMRC will accept e-signatures while COVID-19 measures are in place. If the stock transfer form or instrument of transfer do not include certain details these should be added to the email. These include - the name of the company whose shares are being transferred, the shares being transferred including the date of transfer, the parties to the transaction and the amount of consideration.
HMRC will send out a confirmation letter by email. They will also email if they have any queries relating to the transaction.
The current time limit for paying stamp duty is 30 days after the execution of the document to be stamped. This remains the time limit under the electronic arrangements. For faster payments or CHAPS, you should allow one day for the payment to reach HMRC. For BACS payments, HMRC recommends allowing three working days. If the expiry of the 30-day deadline falls on a weekend or bank holiday, the payment must have reached HMRC on the last working day before the deadline to avoid penalties and interest accruing.
The Companies House website is: www.gov.uk/goverment/organisations/companies-house.
For more information or if you require our assistance with any of the above matters please email us at email@example.com
1 March, 2020
A large number of remuneration committees and boards of listed companies will be reviewing and updating the directors’ remuneration policy for shareholder approval at this year’s AGM.
Here is a summary of the recently issued voting policy guidelines for 2020 from the proxy voting advisory services, Glass Lewis and Institutional Shareholder Services (‘ISS’), as well as the key changes to the Investment Association’s (‘IA’) Principles of Remuneration for 2020. The points noted below relate primarily to remuneration and pension matters, however there are some broader points around diversity, independence, chair tenure that are not included here.
Institutional Shareholder Services
ISS updated guidelines will be effective for meetings from 1 February 2020.The main remuneration changes to the 2019 ISS Guidelines are:
The Investment Association
The IA published its revised guidelines on 1 November 2019, the key changes for which include:
The key changes for the 2020 voting season are:
GL will also review compliance with the Investment Association’s Principles of Remuneration when considering voting recommendations.
If you need more information please contact us at firstname.lastname@example.org
1 February, 2020
1 October, 2019
EMPLOYEE AND WORKFORCE REPORTING – 2019 ANNUAL REPORTS
As the reporting season approaches it is worth a reminder of the new requirements on workforce and employee reporting.Implementation of any reforms to address these new obligations may well be underway and it is important to ensure that the updated measures from the UK Corporate Governance Code 2018 as well as other corporate law and regulations are reported on appropriately.
The UK Corporate Governance 2018 Code (‘2018 Code’) states that the Board needs to understand the views of the company’s key stakeholders and report on how they have considered these in Board discussions and decision making.Engaging with the workforce can, as recommended by the Code, be achieved by having a director from the workforce; a workforce advisory panel; a designated non-executive director or combination of these.The Board Effectiveness Guidance 2018 explains that the overall aim is for meaningful and regular dialogue with the workforce.However, if the Board does not use one of these methods it should explain what alternative arrangements are in place and why.
As our January blog noted, The Companies (Miscellaneous Reporting) Regulations 2018 (the ‘ 2018 Regulations’) which came into force from 1 January 2019 requires all companies with 250 UK employees or more to detail in their annual report how directors have engaged with employees and the effect of their regard for employee interests on principal decisions made by the company in the financial year.
The 2018 Regulations requires certain companies to report on how boards have had to regard to s172 of the 2006 Companies Act being to promote the success of the company, and in particular to give details in the strategic report of how directors have had regard to employee interests as well as how they have built relationships with other stakeholders.
For quoted companies with more than 250 UK employees, there needs to be a pay ratios table in the upcoming report setting out the CEO:UK employees pay ratios, as well as explanations in the directors’ remuneration report.
The 2018 Code states that the Remuneration Committee should review workforce remuneration and detail how this, along with other factors, have been considered when setting the policy for executive director remuneration.As many companies will be putting their remuneration policy for approval at the 2020 AGM there could be increased scrutiny in this area.New provisions about aligning pension contributions with the workforce will also need to be addressed.
There are different reporting requirements depending on the type of company and should you require any further guidance of which parts apply please contact Anne-Marie Palmer (email@example.com; 07803 171 644) if you would like to discuss further.
1 August, 2019
AGM 2019 – PROVISION (4) 2018 UK CORPORATE GOVERNANCE CODE
As the main AGM season draws to a close, it can be easy to assume that with the meeting completed and resolutions passed, that general meeting matters can be parked until next year.However under the 2018 UK Corporate Governance Code (the ‘Code’) it is now a requirement for companies that received 20 per cent or more votes cast against the Board recommendation for a resolution to report within 6 months of the meeting and in the following annual report on actions taken in response to the vote received.(Provision (4) Code)
In the voting results announcement issued after the AGM, companies that comply with the Code, should have made a statement about any resolution that received a significant vote against.It is now appropriate for the Board to consider next steps on investor engagement, in readiness to report initially on its activities in the 6-month update statement.
Investment Association Public Register
The Investment Association set up the Public Register to track shareholder dissent at listed companies and records companies within the FTSE All Share that had received significant votes against resolutions at general meetings.The register is updated periodically, and it is likely that if a company is on the Register, they can expect additional scrutiny on all resolutions the following year.
6-Month Update Statement
Companies are required to provide an update on the views received from shareholders and actions taken and publish this update on the website, within 6 months of the meeting. The Investment Association has put together some guidance on what they expect to see in the Update Statements, namely that Statements should be standalone, describe the engagement undertaken and what actions have been taken and what future actions are intended.
Whilst the Statement should provide a meaningful update, companies are required to provide a final summary of what feedback it received and the actions and taken within the next annual report, or if applicable in the explanatory notes to the resolutions for next year’s meeting.It is not expected that everything will have been completed within 6 months.
There are some common actions that companies can undertake in readiness for preparing their 6-month statement, whatever the subject matter of the resolution that received the votes against:
Please contact Anne-Marie Palmer (firstname.lastname@example.org; 07803 171 644) if you would like to discuss further.
118 Pall Mall
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