Protect against Corporate Identity Theft
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Published: 25 Jan 2020
Here are two important house keeping points that will help to protect the value of your company.
You may have heard of 'identity theft' wh'en a person takes over the identity of another in order to illegally secure funds or property. Well the same happens with companies and is known as 'corporate identity theft'.
Corporate identity theft occurs when an unscrupulous individual visits Companies House on-line and changes the details of your company’s directors, secretary and registered office. They can then order goods and services by the 'new directors, which are delivered to a new address and your company is left with paying the bill!
PROOF Scheme
Fortunately, this can be avoided by registering with the PROOF Scheme at Companies House, so that details can only be changed by on line filing with your company’s authorisation code.
You can check this by viewing your company’s overview page on the Company’s House website, which should show a closed padlock icon at the top of the screen. If it is not there, you need to either check with your accountant or visit Companies House and register under the PROOF Scheme. As they say, better safe than sorry!
New Articles of Association
Secondly, if you are sole shareholder/director, you should make sure that you can pass on the shares you hold in your company.
The Companies Act 2006 enables this to occur by allowing a new director to be appointed by the personal representative on the death of the previous sole director/shareholder.
If your company was registered under a previous Act, new Articles of Association (the company rule book) may need to be adopted. Otherwise application will need to be made to the court. It is a straightforward procedure. Also, your company will have the benefit of modern Articles of Association with any special provisions that may have already been adopted.
If you wish to discuss this further, call David Cane on 07749 080 806 or send an email.
