Timetable for implementation of the Companies Act is announced

Manufacturing News, Source : The Manufacturer
Published : 13 Mar 2007 9:33
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LAW: Progressive introduction of the long awaited legislation to simplify company law

Industry and Regions Minister Margaret Hodge has announced the full implementation timetable for the Companies Act 2006. Implementation will be completed by October 2008.

The elements of the bill coming into effect in October 2007 include: the provisions of part nine of the act relating to the rights of indirect investors, most of the provisions relating to directors’ general duties, and provisions for the enhanced business review and derivative claims.

The part of the act relating to accounts and reports, audit and statutory auditors will commence in April 2008, alongside the new EU company law requirement.

Finally, provisions relating to directors’ conflict of interest duties will take effect from October 2008. This will give companies the opportunity to change their articles of association before commencement of these provisions.

Margaret Hodge said: “The companies Act 2006 is a huge achievement, bringing major benefits to business by modernising and simplifying company law.”

The act is designed to simplify and improve company law, making it easier to understand and more flexible, especially for small businesses. It is expected to save business up to £250 million a year and create greater transparency.

Draft regulations will be placed on the DTI website for comment as they become available.

www.dti.gov.uk/consultations/open-consultations/index.html.

 

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