November 2007

The Government revises the implementation date for the final stages of The Companies Act

Stephen Timms, Minister of State for Competitiveness, made a Written Statement to Parliament on Wednesday 7th November 2007 detailing changes to the Companies Act Implementation timetable.

The Statement explains that the commencement date for most of the provisions due to be commenced on 1st October 2008 will be put back to 1st October 2009.

Those provisions due to be commenced in April 2008 will not be affected and will go ahead as planned.

There may be a limited number of provisions that may still be commenced on 1st October 2008. The Government will make a further Statement in December setting out the final commencement timetable in the light of these discussions.

For further details please visit the News section of the Company Law Resource Centre. If you are not a subscriber to The Company Law Resource Centre then please click here to sign up.

The principal reason for the delay is that the government feels that the Companies House systems will not be ready to handle the new changes and therefore more time is needed to prepare.

There may be some parts of the Act which will still be implemented in October 2008, mainly sections that are not directly linked to changes to Companies House systems and processes. This is still under discussion but it could include the following key areas of importance to business:

  • Directors' conflict of interest duties
  • Repeal of restrictions in the Companies Act 1985 on financial assistance for acquisition of shares in private companies.

A final decision will be made on whether any sections will be implemented in October 2008 during December and will be communicated to parliament in the form of another written statement.

Keep checking The Company Law Resource Centre for further updates.

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