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| Companies Act Update |
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Companies Act 2006 Update
13 December 2007 : Stephen Timms, the Competitiveness Minister, has made a statement on the final timetable for the implementation of the Companies Act 2006.
A number of de-regulatory measures of benefit to business will come into force with effect from 1 October 2008.
This announcement follows the news in November that the final implementation date for the new Companies Act would be delayed by a year until 1 October 2009. At that time, the Government stated that it would seek the views of business on whether some provisions of the Act could still come into force earlier, rather than awaiting the final implementation date of October 2009.
The principal de-regulatory provisions are:
- The adoption of the new procedure for private companies to make capital reductions supported by a solvency statement instead of by a court order.
- The repeal of the restrictions imposed by the Companies Act 1985 on financial assistance for acquisition of shares in private companies, including the "whitewash" procedure.
In relation to directors duties to the company, the provisions of sections 175 to 177 in respect of conflicts of interest will come into force on 1 October 2008. The other codified directors duties have been in force since 1 October 2007.
How the CLP assists clients
The Companies Act 2006 represents the most significant and wide-ranging change to company law for over fifty years. (Click here to go to our 30 second briefing on the Act). It makes fundamental alterations to how companies in the UK are formed and managed. Directors of companies require to be aware of the new provisions. The CLP works with our clients to educate and inform of changes that might affect them.
For more details, contact Keir Willox
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