Just before Christmas 2006, the longest ever single piece of new legislation was approved by Parliament. It is called the Companies Act 2006 and its 1,300 sections and 16 schedules cover over 700 pages. Despite its enormous length, it is intended to simplify company law and make it easier to set up and run new businesses.
The main changes to company law brought in by the new act are as follows:
- there is a new code setting out directors duties
- a simplification of the regulatory regime for private companies has been introduced
- new rules make it easier for minority shareholders to sue the company
- there is no longer a need for private companies to have a company secretary
- there are new rules allowing companies to send and receive notices by e-mail and via websites
- private companies will not need to have AGM’s in the future
- the "financial assistance" requirements for private companies have been abolished
- a single constitution document will replace the existing Memorandum and Articles of Association; and
- new rules will be introduced governing the liabilities of directors
The impact of the Companies Act 2006 was been featured at the Directors' Duties seminar on 22nd February and lunchtime legal briefing on 3rd July. Download the Guide to commencement dates
For further information download the newsletter briefing note or ring Martin Frost on 01904 611411
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