1st Oct 2009 - 00:00
Abstract
The biggest overhaul of company law is completed today when the final elements of the Companies Act 2006 are brought into force set to impact on around 2.5 million British companies.
The government says the plans will help businesses "introduce measures that simplify and strengthen the way they do business". To save business time and money government departments now issue all their changes to business regulations on two dates per year – 6 April and 1 October. From today, new businesses will be able to save valuable time and money with simpler model articles, making it easier to start up and run companies. Other measures will help shareholders and investors by encouraging disclosure of strategic, forward looking information through enhanced business review. Key provisions of the Companies Act 2006 include: * Creating separate and simpler model Articles of Association for small companies, reflecting how they operate * Enabling greater use of electronic communications with shareholders therefore avoiding unnecessary cost and time consuming administration * Making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public. Business Minister Ian Lucas said: "Common Commencement Dates help companies to plan ahead, saving them time and money. The changes under the Companies Act will help 2.5 million British companies and deliver benefits to business of around £300 million a year."