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| Companies Act 2006 |
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The Companies Act 2006 makes sweeping changes to the legislation affecting companies in the UK. Its consequences are wide ranging and affects everyone involved in managing and administering companies.
Companies Act 2006 - 30 second briefing...
The Companies Act 2006 (‘the Act’) is the single largest piece of legislation ever made. It is a comprehensive code of company law. It restates and replaces most of the pre-existing legislation dealing with the formation and administration of companies.
The Act was designed to modernise company law in the UK and remove some of the provisions of the existing legislation that were perceived to be unduly onerous for smaller businesses.
Key Changes
The main changes implemented by the Act include:
- simplifying the company formation process including abolishing the requirement for authorised share capital
- facilitating e-communications
- de-regulating the legal requirements for running private companies, including the abolition of the requirement to have a company secretary
- simplification of capital maintenance provisions
- a codification of directors’ duties, including a new duty to promote the success of the company
- abolishing of the prohibition on financial assistance for private companies purchasing their own shares
- introducing measures to allow companies to limit the liability of their auditors
- extending rights of shareholders to sue by bringing derivative claims on behalf of the company in certain circumstances
The Act is being implemented in stages, with a final commencement date for all unimplemented provisions in October 2009. Many of the changes are already in place and the CLP is assisting corporate clients deal with the new regulatory regime.
If you require assistance in managing your company’s response to the changes, contact Keir Willox. |
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