Connect | Summer 2018 | Companies House clamp down on incorrect filings

verisona.law

ong>Summerong> ong>2018ong>

ong>Connectong>

ong>Companiesong> ong>Houseong> ong>clampong>

ong>downong> on incorrect filings

Earlier this year, ong>Companiesong> ong>Houseong> brought its first conviction

against an individual for making false filings on the public register.

In 2013, Kevin Brewer informed ong>Companiesong> ong>Houseong> that the

Business Secretary, Vince Cable MP, was the shareholder and

director of John Vincent Cable Services Ltd (a company he

had incorporated) without Mr Cable’s knowledge. In

2016, again without their knowledge, he registered James

Cleverly MP and Baroness Neville-Rolfe (the Minister with

responsibility for ong>Companiesong> ong>Houseong>) as directors and

shareholders of Cleverly Clogs Ltd. Brewer’s reasoning for

this was to highlight what he perceived to be flaws in the

ong>Companiesong> ong>Houseong> incorporation procedure.

In this issue

Your obligations in company law

Brewer pleaded guilty to filing false information at

ong>Companiesong> ong>Houseong> in March ong>2018ong> and was ordered to pay

£1,602 in fines and over £10,400 in legal costs.

ong>Companiesong> ong>Houseong> filings act as a vital tool of legal and

financial information and provide a public forum for anyone

to scrutinise a business. However, the information on the

public register is only as good as what ong>Companiesong> ong>Houseong>

receives, which can lead to erroneous filings. Grant Usher

explains the benefits of ensuring your business gets its filings

right and the consequences of getting them wrong.

Why should I ensure the filings at

ong>Companiesong> ong>Houseong> are correct?

Correct filings demonstrate good corporate governance

on behalf of the company and shows that the business is

on top of its affairs more generally.

In the event of a company sale, the publically accessible

information on ong>Companiesong> ong>Houseong> will form an important

part of the due diligence process. Typically, a buyer will

ask the seller to warrant the accuracy of the information

submitted to ong>Companiesong> ong>Houseong>.

There are additional benefits when companies sign up

for the ong>Companiesong> ong>Houseong> Web Filing system. Web Filing

offers a faster, more efficient and in some cases, cheaper

way of submitting ong>Companiesong> ong>Houseong> filings online.

Submissions can be made in a few clicks which reduces

the risk of late filings which could then lead to ong>Companiesong>

ong>Houseong> sanctions.

ong>Companiesong> ong>Houseong> deals with around 50 to 100 cases of

corporate identity theft every month. To minimise this risk,

there is also an option to sign up to PROOF, a free service

which means filings can only be made electronically via

Web Filing.

What happens if a filing at

ong>Companiesong> ong>Houseong> is incorrect?

You may be able to submit a form RP04 in order to correct

factual errors but the original filing will still remain on the

public register. Note that form RP04 cannot be used for all

incorrect filings.

You could apply to court for an order for the incorrect

filing to be removed from the public register. The court

will consider if the filing is factually inaccurate, was made

without the authority of the company, or has been forged.

Whilst errors can sometimes be innocent mistakes,

occasionally those filings can result in penalties being

issued by ong>Companiesong> ong>Houseong> and, in extreme cases,

criminal prosecution. The ong>Companiesong> Act 2006 makes

it a criminal offence for a person to ‘knowingly or

recklessly deliver’ a document that is ‘misleading, false or

deceptive’. The maximum sentence is up to two years in

prison, a fine, or both.


How can Verisona Law

help me and my business?

At Verisona Law, we

can assist with your

company secretarial

requirements by:

• Providing general company secretarial

assistance, including preparing and filing your

business’ annual confirmation statement

(previously annual return)

• Preparing, and keeping up-to-date, your

business’ public register at ong>Companiesong> ong>Houseong>

including share transfers and appointment/

resignation of directors

• Preparing, filing and keeping up-to-date your

PSC registers at ong>Companiesong> ong>Houseong>, saving your

business time, money and resource

• Providing training to company secretaries

and directors with regards to all company

secretarial requirements

If you would like further information

about company secretarial requirements,

please contact:

Grant Usher, Associate Solicitor,

on 023 9231 2058 or by email to

grant.usher@verisonalaw.com.

ong>Connectong> with us

@verisonalaw

verisonalaw

verisona-law

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1000 Lakeside

North Harbour

Portsmouth PO6 3EN

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Wellesley ong>Houseong>

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Verisona Law is a trading style of Verisona Ltd whose registered office is at 1000 Lakeside, North Harbour, Portsmouth, Hampshire PO6 3EN.

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