Facelift for the Companies Act
Date of Issue: 07 December 2006
Royal Assent was given to The Companies Act 2006 on the 8th November. This act effectively updates what was originally a Victorian piece of legislation, drafted some 150 years ago. The new legislation aims to reflect the digital age, allowing companies to file all documentation to Companies House electronically from January 2007, rather than the limited amount that is acceptable today.
There is however, a sting in the tail.
Phil Jones, Bates Weston's Audit Manager, comments:
"Electronic filing is clearly a great step forward, however, the filing deadline has also been brought forward by a month, giving companies only 9 months, instead of the current 10 from their year end to file their documentation"
"Clearly for many companies, the ability to send returns to Companies House in this way will be a great advantage, however, smaller companies, who are not perhaps as technologically able, will have to give consideration as to how they will comply with what will be a mandatory requirement to file documents digitally."
In addition to the introduction of electronic filing, the other key areas, which will be implemented during 2007, are: -
- New model Articles in a simpler and less formal layout.
- Smaller Companies will no longer be required to hold Annual General Meetings as a Written Resolution regime is automatic.
- A Company Secretary is no longer required in a private company.
- The lengthy and expensive "Financial Assistance" procedure in company reconstructions and management buyouts is abolished.
The government believes that the cost savings to smaller companies
in the reduction of "red tape" arising from the Act is estimated
to be £100 million.
For further details, please contact:
Bridget Charlton, Marketing Manager
Email: bridgetc@batesweston.co.uk
or telephone 01332 365855
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