Changes to company
law: help on the high street for small business
Sector: Central Government
Date Created: Mon 31st Mar 2008, 13:00:10
Source: Department for Business, Enterprise and Regulatory
Reform
Link: www.berr.gov.uk
UK - More than 20,000 high-street accountants and solicitors are
set to receive leaflets explaining important changes to company law,
which will have a big impact on their professions.
The Companies Act 2006 makes sweeping changes to improve and simplify company
law. To ensure a smooth transition, it is being phased in over a three-year period,
with the next set of measures coming into force on 6 April 2008.
Department for Business Minister, Gareth Thomas, said:
"The business world doesn't stand still and the law is changing to reflect
this. The Companies Act 2006 provides a real step forward in the reform and modernisation
of company law. It contains a number of de-regulatory measures and will make
the UK an even more attractive place to invest and do business."
The measures coming in on 6 April are particularly relevant to solicitors and
accountants; they include:
* The accounting and reporting requirements for small companies are being brought
together into a single set of regulations; this will make things simpler for
small companies and their advisors
* Private companies will no longer be required to have a company secretary
* The time in which private companies can file their accounts with the Registrar
of Companies has been reduced from 10 to nine months
Parts of the Act that have already come into force include:
* Companies can make greater use of electronic communications for contact with
shareholders
* Private companies do not need to hold an annual general meeting unless they
positively opt to do so
The 2006 is the result of extensive consultation with business, investors, practitioners
and professions.
Further changes are set to come in on the 1st October 2008 and the 1st October
2009. Full details on can be found at http://www.berr.gov.uk/bbf/co-act-2006. |
