Companies Act 2006 update
January 2008
It was originally intended that the Companies Act 2006 would have been fully implemented by October 2008. This has now been delayed.
On 7 November 2007, Steven Timms, Minister of State for Competitiveness made a written statement to Parliament detailing changes to the implementation timetable such that a majority of the provisions due to come into force on 1 October 2008 will not now be brought in to force until 1 October 2009. The final implementation timetable was announced on 13 December 2007 in a further written statement. This state of limbo can hardly be helpful to charitable companies trying to attract new directors or review their corporate structure.
The delayed provisions include those relating to company formation, share capital, company and business names, and directors’ residential addresses. These require Companies House to modify its systems and processes significantly. Although it is understood some headway has been made with these modifications, it is unable to confirm that it will be in a position to implement the changes in time for planned final implementation. As a result, the Government decided to delay the implementation of these provisions giving Companies House more time to adjust.
The remaining provisions planned for implementation in October 2008 not requiring changes to Companies House systems and processes will come into force as planned. However, the new procedure enabling private companies to make capital reductions without the need for a court order will be brought in on 1 October 2008 even though this does need the Companies House modifications.
The next phase of the implementation timetable, planned for April 2008 is to continue as planned. This includes those provisions of the Act relating to accounts and reports, and those removing the requirement for private companies to have company secretaries. However, the statement made on 13 December added to this the provisions relating to the removal of entries relating to former members from the register, and inspection of the register of interests in a company’s shares.
See also James Sinclair Taylor’s article: 'Corporate documentation...a time for review' in this issue.
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