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Can AIM-listed companies benefit from outsourcing their corporate governance arrangements?

Can AIM-listed companies benefit from outsourcing their corporate governance arrangements?

27 January, 2025
Global Corporate Corporate Administration

In today's increasingly competitive business environment, companies of all sizes face mounting pressure to streamline their operations and maximise the effectiveness of their internal resources. For AIM-listed companies, this often leads to a senior member of the board ‘double-heading’ by taking on the role of the company secretary alongside their primary role. However, this approach can create significant challenges and expose the business to unnecessary regulatory risk. 

An alternative option to fulfilling your AIM company secretarial requirements, is to outsource the company secretary role.  In this article our head of business development for corporate services in EMEA, Chris Mayfield explores some of the key benefits that can be gained from outsourcing your governance arrangements.

 

1. Risk, compliance and investor impact

A dedicated provider of company secretarial services will prioritise a deep understanding of the governance and compliance requirements in their respective region. They will also proactively monitor the regulatory landscape to prepare for upcoming changes. Having a resource dedicated to these areas mitigates the risk of non-compliance and the prospect of fines, and the negative press associated with that. For investors, this demonstrates a strong commitment to robust governance which consequently reinforces your company’s reputation in a positive light. 

 

2. Specialist knowledge and unique insight

Providers of outsourced company secretarial services support clients across the entire lifecycle of a business, covering a broad range of industries, sizes, transactional requirements and functions. Each company operates with its own unique culture, priorities and ways of doing business. This exposure provides an outsourced company secretary with exceptional experience and insight which can be brought into your boardroom to benefit your business. 

 

3. Time

Tasks such as minuting board meetings, compiling annual reports and co-ordinating annual general meetings can be a significant drain on internal resources. In the absence of a dedicated company secretary, these responsibilities often fall to the head of legal or CFO with the tasks being squeezed in amongst their core day-to-day duties, often on a last-minute basis. 

It goes without saying that an outsourced company secretary can alleviate that burden. Furthermore, an outsourced company secretary can establish a formal annual schedule around key governance events, allowing for a proactive and structured approach to corporate governance throughout the year. 

 

4. Flexibility

Annual leave and sickness can present real challenges in a governance function, particularly if you are reliant upon a single company secretary resource or a senior executive acting in a dual-role capacity. Companies who outsource their company secretarial function, gain access to a pool of experienced professionals, ensuring that a dedicated and qualified expert is always available to meeting their needs. 

Ocorian assigns appropriate resources to each client to ensure seamless coverage during periods of absence and provide additional flexibility during peak periods throughout the year. 

 

5. Value-add 

Companies that provide outsourced company secretarial services often have other value-adds that clients can leverage. This could include an extensive network of useful contacts such as specialist lawyers, brokers, bankers and advisers, but it could also include additional service offerings such as regulatory compliance, accounting and tax compliance to further support your business needs. 

 

Final thoughts

For AIM-listed companies, the implications of inadequate governance arrangements and non-compliance with UK regulations are substantial. They range from a simple drain on internal resources, through to fines, negative press and poor investor sentiment. 

Outsourcing your corporate secretarial requirements can transform your governance from a resource drain and a business risk into a strategic advantage, providing both improved operational efficiency and strengthened credibility.

 

How Ocorian can help?

Ocorian’s team of experienced company secretaries based in the UK and Channel Islands, bring extensive expertise in working with listed businesses. 

Our services comprehensively cover the governance requirements for AIM-listed business and are further complimented by a range of services covering regulatory compliance and share scheme administration. 

Ocorian operates across 20 countries globally and can also assist with international subsidiary compliance and corporate financing structures. 

For more information, contact our AIM governance and compliance team.