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Register of directors’ shareholdings

Under the Companies Act 1985 every company must keep a register showing the number, description and number of shares and debentures of the company or its subsidiary companies held by its directors, or held in trust for them, or of which they have some right to be holders. Directors are obliged to notify the company in writing of all shares and debentures, and interest in shares and debentures, that they hold, cease to hold or acquire the right to purchase in the company or a subsidiary. A person in accordance with whose instructions a director is accustomed to act is considered to be a director for these purposes. Interest in shares and debentures is construed fairly widely. If the shares are held by a body corporate, the director is interested if he holds a third or more of the voting power at a general meeting of that body. He is also interested if he can at any time require the shares to be registered in his name or to call for delivery of the shares to himself. Interests of wife or infant sons and daughters are interests of the director. It is the responsibility of the director to inform the company of all relevant facts within a very short period. There are very heavy penalties for failing to comply with the Act. The register must be kept at the registered office, or wherever the register of members is kept, and shall, during business hours, be open to the inspection of any member without charge and any other person for a small fee. It need not any other person for a small fee. It need not be open all day but must be so for at least two hours.

Reference: The Penguin Business Dictionary , 3rd edt.