DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2007/133)
issued by The Government News Network on 13 December 2007
Competitiveness
Minister Stephen Timms has today set out the final timetable for
the implementation of the Companies Act, and confirmed that a
number of de-regulatory measures of benefit to business will come
into force with effect from 1 October 2008.
Mr Timms explained that in view of the strength of business
representations and of further advice from the Registrar of
Companies, the measures to come into force next October will
include the new procedure for private companies to make capital
reductions supported by a solvency statement instead of by a court
order. The measure could save large and small businesses time and money.
The confirmation follows the announcement in November that the
final implementation date for the Companies Act will now be 1
October 2009, rather than 1 October 2008. The Government said at
that time that it would seek the views of business on whether some
provisions of the Act could still come into force in October next
year, rather than awaiting the final implementation date of
October 2009.
Competitiveness Minister Stephen Timms said:
"The Companies Act introduces sweeping changes to simplify
and improve company law. Company law has been substantially
rewritten to make it easier to understand and more flexible -
especially for small businesses.
"We have listened to the views of business and will be
bringing simpler and clearer company law into place at the
earliest opportunity, and so are delivering on our promise to cut
red tape and provide a good environment for British companies to
do business."
The Government has decided that the following provisions should
be commenced with effect from 1 October 2008:
* sections 69 to 74: objection to company names.
* sections 82 to 85: trading disclosures.
* sections 155 to 159: provisions relating to corporate directors
and under-age directors.
* sections 175 to 177: general duties of directors in respect of
conflicts of interest.
* sections 182 to 187: declaration by a director of an interest
in an existing transaction or arrangement.
* sections 641(1)(a) & (2)-(6), 642, 643, 652 and 654: new
procedure for private companies to make capital reductions
supported by a solvency statement instead of by a court order.
* repeal of the restrictions under the Companies Act 1985 on
financial assistance for acquisition of shares in private
companies, including the "whitewash" procedure.
In addition, the following provisions will be commenced with
effect from 6 April 2008:
* sections 121 and 128: register of
members: removal of entries relating to former members.
* sections 811(4), 812 and 814: inspection of register of
interests in a company's shares.
The government confirmed in November that measures dependent on
changes to Companies House processes and systems would come into
force in October 2009 rather than October 2008.
Note to Editors
1. The new commencement timetable for the Companies Act as well
as the Written Statement to Parliament is available here: http://www.berr.gov.uk/bbf/co-act-2006/index.html
Department for Business, Enterprise & Regulatory
Reform
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