how does the companies act affect formations?
Formations will be simpler and the paperwork straightforward. In future private companies will be formed by one person. There will be no need to appoint a company secretary (although company secretary duties remain, and you may still appoint a company secretary if you wish), and one person may be both director and shareholder. The old, familiar memorandum will be replaced by a much shorter constitutional document. This will basically say that the members wish to form a company and agree to take at least one share/give a guarantee. The old objects clause is no longer needed and the company has legal capacity. There will also be a standard set of substantially simplified articles. Authorised share capital will be abolished, and a statement of capital and initial shareholdings will be submitted to Companies House on Formation. The statutory declaration on formation will be replaced by a “statement of compliance”. Directors must register a service address at Companies House (as well as a r
