How the Companies Act 2006 will affect your Company
Over recent years there has been encouragement from the business sector to up-date and reform where necessary company law legislation. This has now occurred in the form of the Companies Act 2006, which will be implemented over the course of the next eighteen months.
We have listed below a summary of the main changes which will affect you company. If these changes raise any questions then you should contact one of our solicitors at Ashton Morton Slack.
Making Decisions
You will no longer need to hold an annual general meeting (commonly known as an AGM)) unless 10% of the shareholders agree that one is necessary. Written resolutions (for matters such as amending the appointment of a director) will now only require majority approval, whether it be 75% or 50% plus one.
Directors
Every company formed under the Companies Act 2006 will have to have at least one Director. The age limit will decrease from 18 years to 16 years. Directors will also be obliged to provide Companies House with their address for service.
Company Secretary
From the 6 April 2008, your company will no longer be required to have a Company Secretary unless you want one.
Memorandum & Articles of Association
If you are intending to form a company from October 2009 you will be able to produce a short document containing the facts of the company on set up and the main principles governing the company will then be placed into the Articles of Association. This will assist companies setting up and allow companies to use the Companies Houses standard set of Articles.
Companies will also no longer need to include in these governing documents the object of the company.
Financial Matters
The Companies Act 2006 encourages companies to file their accounts electronically. Companies House believe that this will make the filing of accounts easier. It is for this reason that from April 2008 the deadline for filing accounts will reduce from ten months to nine months.
Financial assistance to buy a company's own shares will also no longer be prohibited.
Here at Ashton Morton Slack we are trained in the new changes. If you are unsure how the new changes will affect you business then contact the company law team at Ashton Morton Slack who can advise you.
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