The biggest overhaul of company law was completed yesterday, with the final elements of the Companies Act 2006 being brought into force.
2.5m British companies set to benefit from a range of measures that simplify and strengthen the way they do business. To save business time and money Government departments now issue all their changes to business regulations on two dates per year – 6 April and 1 October. This is part of the Government’s commitment to promote better regulation, doing so only where necessary, in a proportionate and targeted way, and reducing bureaucracy wherever possible.
From 1 October, new businesses will be able to save valuable time and money with simpler model articles, making it easier to start up and run companies. Other measures will help shareholders and investors by encouraging disclosure of strategic, forward looking information through enhanced business review.
Key provisions of the Companies Act 2006 include: creating separate and simpler model Articles of Association for small companies, reflecting how they operate; enabling greater use of electronic communications with shareholders therefore avoiding unnecessary cost and time consuming administration; and making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public.
Business Minister Ian Lucas said: “We are working hard to create the best environment for businesses to thrive and it is paying off, with the UK recognised by the World Bank as the best place in Europe to do business.
“Common Commencement Dates help companies to plan ahead, saving them time and money. The changes under the Companies Act will help 2.5m British companies and deliver benefits to business of around £300m a year.”