How will Company Law change with the introduction of the Companies Act 2006?
The Companies Act 2006 will be implemented in a number of phases and fully into force in October 2009. At over 700 pages it is the largest Act of Parliament ever passed. It will replace the Companies Acts 1985 and 1989 and other companies legislation. Despite its volume, many of the provisions represent a relaxation of the regime for private companies. • Private companies will no longer need a company secretary; • The entire concept of “authorised share capital” will be abolished, • Companies may issue as many shares as required; • Directors can give an address for service, rather than their home address; • Directors’ duties are set out in a code; • The rules on directors’ loans will be relaxed; • Financial assistance for the purchase of a company’s own shares is no longer prohibited and the “whitewash” procedure will no longer be required.
