COMPANY LAW REFORM
The new Companies Act 2006 was the result of an 8 year review and consultation process. One of the main purposes of the Act was to simplify the law, make it as accessible as possible for smaller firms and avoid imposing unnecessary burdens on the ways companies operate. The result is one of the largest ever pieces of legislation running to 700 pages, 1300 sections and 16 schedules.
These are some of the changes which apply to private companies and which are now in force:
- Option whether or not to have a Company Secretary
- If no Company Secretary, one Director will suffice
- Option whether or not to have an Annual General Meeting
- Filing Date for accounts 9 months from year end (previously 10 months)
- Simplified procedure for passing Resolutions
- Increased late filing penalties
Although the Act came in to force in November 2006, it has been implemented in phases with the final one arriving in October 2009. Included in the changes scheduled for October 2009 will be:
- Improved rules for company names
- A simpler set of model Articles of Association
Despite the size of the Act it has achieved much of its purpose and it should now possible for private companies to operate in a simpler and more economical way than before.
