services 
for business

 services 
for individuals


Associated Sites

Associated Services

 News  
 

Companies Act 2006 - Introduction


Following a lengthy consultation process, the Companies Act 2006 (“the Act”) received Royal Assent on 8 November 2006.  The Act is said to be the largest ever totalling some 760 pages and comprising of 1,300 clauses and 16 schedules.

 

The aim of the Act is to simplify company law and make it more accessible but the original plan – to replace the Companies Act 1985 completely – was not followed through and the Act merely repeals and amends large parts of the Companies Act 1985 leaving some of it still in force.

 

The Act is being implemented in stages between now and October 2008 and set out below are some of the more important changes that have been introduced already.

Changes as of 1 January 2007

Electronic disclosure of company information:

As of 1 January 2007 all companies have to disclose their company name, place of registration, registered number and registered office on all business letters, emails, order forms and company websites. On the company website this information only needs to be disclosed in one section – on the page for contact details for example.

Changes as of 20 January 2007

Electronic communications with shareholders:

As of 20 January 2007 companies may provide, in their Articles of Association or by shareholder resolution, for electronic communications with shareholders to be the default position (placing documents on a website and communicating by email). Shareholders would then have to request a hard copy of the document specifically.

It should be noted that the company will still need to send a letter of request to each shareholder individually asking them to consent to electronic communications and to provide an email address.

 

If you have any questions about the above or require further information please feel free to contact me.

 

More sweeping changes to UK company law (including the codification of directors’ duties and streamlining the regulatory requirements for private companies) are on the way.

 

A timetable for the implementation of the remaining provisions of the Act has just been published and we will post further articles summarising these changes over the coming months.

 

If you require advice on any of the above or guidance on the Act, please contact Paul Warman at Leathes Prior on 01603 610911.


Back To News