Subjects:

Company Law

Also Available: Explanatory Notes

The 'Companies Act 2006 (formerly known as Company Law Reform Act 2006) is expected to gain Royal Assent in November 2006. Major changes are predicted for all areas of company law and practice.

What does it mean for my company?
The Companies Act 2006 is expected to make it easier to set up and run a company. Changes will affect directors' duties; companies' constitutions; share capital and shareholder communications; accounts and audits; and the registration of directors with Companies House. The Act is also predicted to implement the EU Takeover and Transparency Directives.

Small businesses are anticipated to benefit from:-

• The creation of a separate default constitution for private companies
• Need for private companies to have private secretaries to be abolished
• Simplification of private companies decision-making procedures

• Deregulation on registration of present and past members of the company
• Clarification of the rules on transfer of assets between companies in the same group

When is it going to happen?
The existing Companies Bill (formerly known as the Company Law Reform Bill), is forecast to receive Royal Assent in November 2006.