June 2005
Changes to Company Law

The Government is trying to make the UK one of the best places in the world to conduct business. They intend to create an effective framework of company law and corporate governance which will promote enterprise and help stimulate investment in the UK. The aims are to keep the regulatory burden to a minimum, and promote a long-term investment culture. This thorough overhaul of company law will make it more suited to the needs of businesses. The proposals are part of a wide programme of action which is intended to boost enterprise, encourage investment and promote long-term company performance. My view is that most of the measures represent a significant step forward in ensuring that company law remains up to date, flexible, and accessible for everyone.

The detailed proposals will pave the way for hundreds of changes affecting companies, company directors and company secretaries and include:

  • some companies will be able to choose to not have a company secretary;
  • a statement of directorsí duties will be incorporated into statutory law;
  • AGMs in some companies will be optional and probably very much the exception;
  • accounts will have to be delivered to Companies House much more quickly;
  • no company will need to have an objects clause in its constitution;
  • no company need be limited by its authorised share capital; and
  • auditors may agree proportionate liability with the companies that they audit.

The proposed changes can be downloaded free of charge by visiting Company Law Reform

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