Monday, November 8, 2010

Virtual company registers

We are seeing an increasing number of accounting firms that we assist with company establishments opt to receive all documentation electronically, as opposed to the traditional provision of a physical folder to store the company register.

The ability to maintain a company register in electronic form only is a relatively recent innovation under the Corporations Act and particularly for accountancy firms who act as registered office for a number of their clients’ companies, is certainly one worth exploring.

Obviously, there are a number of issues that always need to be taken into account, however broadly, so long as the following issues are addressed, it should be possible to avoid the need for a physical register to be stored:

1. The company must resolve that it intends to maintain an electronic, as opposed to a physical, register.

2. The relevant technology steps need to be taken - McR often assists accounting firms in this regard.

3. The company must have a process by which a physical register can be produced if ever required.

Until next week.