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Companies Act final timetable announcement

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

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