Act Simplifies Company Law

Another round of measures from the Companies Act 2006 are due to take place on 6 April.

The Companies Act 2006 is being phased-in over a 3 year period with the next set of measures coming into force on the 6th April.

Measures currently in force include:

  • Companies have the option to make greater use of electronic communications with shareholders.
  • Private companies don’t need to have an AGM (Annual General Meeting) unless they opt to actually do so.

The new parts of the act that come into force on the 6th are particularly relevant to accountants and solicitors and cover:

  • Accounting & reporting requirements for small businesses are being merged into a single set of regulations to make matters simpler for small business and small business advisers.
  • Private companies are no longer required to have a company secretary.
  • The time for private companies to file acocunts with the Registrar of Companies has reduced from 10 to 9 months.

The new legislation is expected to affect more than 20,000 high-street accountancy and legal firms.

Gareth Thomas, head of The Department for Business, Enterprise and Regulatory Reform (DBERR) said that The Companies Act 2006 is a step forward in reform and modernisation of company law and expects the de-regulatory measures to

"…make the UK an even more attractive place to invest and do business.”

Further changes to company law will take place on 1st October 2008 and 1st October 2009.

Visit the Office of Public Sector Information for full details of the Companies Act 2006 (PDF)

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