Thursday, 10 September 2009

Companies Act 2006 Kicks In From 1 October 2009

The Companies Act 2006 has made a number of changes, many of which will affect us, as small businesses, and some of which have already been actioned.

Where Are We Now?

The following changes have already taken place. (Some are optional, others are not).

You Must:
  • be aged 16 or over to be appointed a director.

You Do Not Need To:

  • appoint a company secretary, if you are a private company (though you can still do so, if you wish).
  • hold an annual general meeting, if you are a private company, again, unless you opt to do so.
  • have a unanimous vote for resolutions. Subject to articles, if you are a private company. Members may agree in writing to resolutions.
  • get a court order to make capital reductions as a private company - they can be supported by a solvency statement instead.

What We Can Look Forward To:

  • Directors address protected from disclosure. From 1 October, each director will have a service address, and a usual residential address. The former will be in the public domain, with the latter only being available to public authorities and credit reference agencies. Initially, the director's residential address will automatically become the service address, though you will be able to specify an alternative address (such as the company's registered office) on the Companies House website.
  • Also, there will be an alternative address for the company to specify where its registers can be made available for public inspection. This can either be the registered office, or a single alternative inspection location (SAIL).
  • A number of changes have been made to make it easier to set up a limited company..
  • There will be changes to company articles for new companies. They will include the company's objects and liabilities - which were previously in the memorandum. Copies of model articles are available on the Companies House website.
  • Any ammendments to the company's articles must be notified to Companies House, within 15 days. Failure to do so is a criminal offence, carrying a civil penalty of £200.

Also remember; all Companies House accounts filing deadlines have been reduced, by one month to 9 months (private companies) and 6 months (public companies). This applies to all accounting periods beginning on, or after, 6 April 2008.

Failure to comply will result in a fine of up to £1,500.

From 1 October 2009, all original Companies House forms are being replaced. Watch this space for a future blog post on this particular change.

In the interim, you can check out the new provisions of the Act on the following link, including transitional provisions, and downloadable versions of the new forms.:

Companies House has produced guidance notes, in a variety of formats, giving step by step instructions on how to form a limited company.

1 comment:


Somebody is getting a treat.