This is that department of a company which handles the tasks related to hiring and recruiting. Inside directors are either shareholders or high-level managers from within the company. Private equity might be a pricey investment, but the payoff could be big.
Directors have a personal responsibility to ensure that matters of Company Law are adhered to at all times and can be held personally liable for non-filing of Companies House returns and other infringements of law conducted by a company. Any or all of the company's directors can be resident anywhere in the world and can be of any nationality. Company Secretary We can act as your company secretary. The secretary can be a director The secretary can be a corporate body The secretary, very broadly speaking, is usually responsible for administrative matters concerning the company.
It is generally the duty of the secretary to maintain official company minute books, statutory registers and prepare and lodge any necessary returns required by Companies House, such as changes to directors and filing of annual returns and accounts.
The secretary is answerable to the directors, and is often called upon to keep the directors advised of changes in company law affecting the running of the company. Whilst the secretary can be held personally liable for non-filing of Companies House returns, in practice it is generally the directors upon whom this responsibility lies. There are no restrictions on nationality or residency. Nominee secretaries are often appointed in order to fulfil this role in a professional capacity.
Shareholders A company can have any number of shareholders - or members, holding any number of shares. Exceptional managerial skills are needed to coordinate activities of production and distribution departments and this is done by managers who work within this branch of the business.
The following is the hierarchical distribution of responsibilities:. Management of staff and employees is the responsibility of the HR management department of a private company. HR executives are responsible for hiring, recruiting, interviewing, paying salaries, maintaining employee relations and training of staff. The following are the job positions within this branch:. Financial management is vital to the functioning of any organization and especially for private companies. To manage accounts and finance, private companies hires some of the following employees:.
Every private company has one or several office spaces, from where the employees work or function. It is important for a private company to have proper office management to ensure a problem free working environment and maximum productivity. Inside directors are either shareholders or high-level managers from within the company. Inside directors help provide internal perspectives for other board members. These individuals are also referred to as executive directors if they are part of the company's management team.
Outside Directors — While having the same responsibilities as the inside directors in determining strategic direction and corporate policy, outside directors, are different in that they are not directly part of the management team. The purpose of having outside directors is to provide unbiased and impartial perspectives on issues brought to the board.
Management Team As the other tier of the company, the management team is directly responsible for the company's day-to-day operations and profitability. Chief Executive Officer CEO — As the top manager, the CEO is typically responsible for the corporation's entire operations and reports directly to the chairman and the board of directors.
It is the CEO's responsibility to implement board decisions and initiatives, as well as to maintain the smooth operation of the firm with senior management's assistance.
Often, the CEO will also be designated as the company's president and therefore be one of the inside directors on the board if not the chairman. However, it is highly suggested that a company's CEO should not also be the company's chairman to ensure the chairman's independence and clear lines of authority. The COO is often referred to as a senior vice president. Chief Financial Officer CFO — Also reporting directly to the CEO, the CFO is responsible for analyzing and reviewing financial data, reporting financial performance, preparing budgets, and monitoring expenditures and costs.
The CFO is required to present this information to the board of directors at regular intervals and provide it to shareholders and regulatory bodies such as the Securities and Exchange Commission SEC. Also usually referred to as a senior vice president, the CFO routinely checks the corporation's financial health and integrity.
The Bottom Line Together, management and the board of directors have the ultimate goal of maximizing shareholder value.
A private company needs as much management and administration as any other government owned company or organization needs. Whatever the scale of expanse is, every private company needs managers at different levels or for different departments to ensure smooth working and proper operations on a day to day basis. The topmost position in a private company is taken by the managing director. A managing director is basically the owner of a privately owned firm and is the one who determines the goals of the company, the budget and the marketing strategies. A private company is a company held under private ownership with shares that are not traded publicly on exchanges. This ownership structure merges some of the Privately-held companies are.