Company Files - For How Long Should They Be Kept?

[CokeTulip]

Some legals on AB may have come across this... any thoughts welcome.

1)
Is it reasonable for a company to destroy all files after 7 years?

or
2)
Is the onus on the company to keep some historical files (~22 yrs old approx) that are very significant (and hold crucial evidence that they know could be needed in future as well as signed legal documents)?


3)
Are there any circumstances at all where files should not be destroyed however old?


They are saying that no files exist whatsoever .. I'm just wondering how this might be perceived in law - reasonable and this is what you would expect or suspicious?

Thanks

[Skyline D]

Files on what really is the question?

For tax purposes you need to keep financial records for six years plus the year you are in (effectively seven years). I'm not aware of any general requirement to keep non-financial records for any longer than they themselves deem necessary and financial records can be destroyed after the six years expires.

Normal practice would be to keep important information such as might relate to the cost of capital assets still in use (legal correspondence on purchase of a building for instance) longer. You may need it if you eventually come to sell the asset. It would also be usual to retain a historic share register, and perhaps copies of old AGM minutes. I don't believe it's actually illegal to have destroyed older information though.

[factor-fiction]

Are you referring to a PPI mis-selling claim?

[tonywiltshire]

I think that it is wise to keep all company records for at least 6 years a firm with whom I am associated keeps some records for 50 years, which may be excessive for some organisations particularly if space is limited. The Money Laundering Regulations 2007 state records should be kept for 5 years therefore in my view 6 years would be a sensible time for most items except where commercial needs require longer.

[CokeTulip]

Thanks
No - the files are not financial at all but to do with an employee involved in a very serious matters so they held a considerable amount of evidence covering years and also signed paperwork that is still valid. All gone.

[Buenchico]

Many companies (and organisations) feel compelled to destroy any documents that relate to individuals as soon as possible so as not to risk infringing the Data Protection Act. For example schools now routinely destroy all files relating to past pupils (except possibly a record of their exam results) within days of them leaving school. Similarly supermarkets know that they risk hefty fines if they keep CCTV images of shoppers for more than a very short period, of perhaps a week or two (unless, of course, those images are to be used for a criminal prosecution).

So expecting files to be held for 22 years seems to be entirely unreasonable. Financial files are often held for 7 years because the tax man can normally only go back for 6 tax years (but, since the tax year and the calendar year don't coincide, 7 years is a safer rule).

[CokeTulip]

Thanks Buenchico. Yes - these guides apply and normally you wouldn't expect things to be there after 7yrs.

I dont know the answer though regarding certain docs (because of their very serious content) and whether it is wise for the company to destroy them. I wonder if a company is about to destroy such files if they should ideally check with some body first or it is at their discretion? I dont know the ans nor do I have examples and it is good (as per other post) that some keep files for 50 yrs. (they have a reason) I have found one org that has files over 30 yrs but it is very organised.

I'm not saying that they shouldn't get rid at all - just I feel there may be circumstances where they have reason to override the 7 yr rule and hold onto particular docs.

[Maydup]

I agree with your reasoning CT but if there was no criminal case at the time, the documents are not legal evidence, just work records and historic. The modern thinking is that employers shouldn't keep things beyond their natural time. So if someone's given a written warning for example, it cannot be referred to again in say five years time and should really be destroyed.

[pixie373]

From working in Care Homes and agencies- and i don't know if it's generic- we had to store ALL information for 7 years. Pretty much in case someone wanted to take us to court. It could be shredded then whatever it contained.

[CokeTulip]

Thanks Maydup - but if this was a crime and the company handled it all behind closed doors at the time?

[Skyline D]

I'm moving away from my financial knowledge and towards legals which I don't know that much about but, surely by definition, if the company dealt with whatever it was "behind closed doors" then there was no crime. If there were no criminal charges or convictions there was no crime inevitably. Or no criminal anyway.

[CokeTulip]

Skyline - thanks for that, and yes one would assume - no crime, however this is not the case here.

[pixie373]

I imagine if there's no impending court case, where the company have to produce the records, they would have destroyed them as soon as they were allowed to- especially if in their interests to do so.

[factor-fiction]

Maybe I've missed something but I am not sure what you are getting at here, CokeTulip.
Maybe you can't give any more information about what the documents were, but it would help if you could.

[CokeTulip]

I think this is a tricky one to answer (unless someone has actually come across it).
Pixie is thinking along the right lines.

[factor-fiction]

This is all too cryptic for me, Coke Tulip

[CokeTulip]

Sorry factor-f, in how I'm putting it across - I cant go into details.

Tony mentions "except where commercial needs require longer" - that helps.
Thanks