Department for Business, Innovation and Skills
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Companies Act Comes Into Full Force
The biggest
overhaul of company law is completed today when the final elements
of the Companies Act 2006 are brought into force, with 2.5 million
British companies set to benefit from a range of measures that
simplify and strengthen the way they do business.
To save business time and money Government departments now issue all their changes to business regulations on two dates per year – 6 April and 1 October. This is part of the Government’s commitment to promote better regulation, regulating only where necessary, doing so in a proportionate and targeted way, and reducing bureaucracy wherever possible.
From today, new businesses will be able to save valuable time and money with simpler model articles, making it easier to start up and run companies. Other measures will help shareholders and investors by encouraging disclosure of strategic, forward looking information through enhanced business review.
Key provisions of the Companies Act 2006 include:
* Creating separate and simpler model Articles of Association for small companies, reflecting how they operate
* Enabling greater use of electronic communications with shareholders therefore avoiding unnecessary cost and time consuming administration
* Making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public.
Business Minister Ian Lucas said:
"We are working hard to create the best environment for businesses to thrive and it is paying off, with the UK recognised by the World Bank as the best place in Europe to do business.
"Common Commencement Dates help companies to plan ahead, saving them time and money. The changes under the Companies Act will help 2.5 million British companies and deliver benefits to business of around £300M a year."
The changes have been widely welcomed by businesses because many of the measures have been introduced to reflect how companies already operate, minimising the burden on business to adapt to new regulation.
The following regulations are also coming into force:
Department for Business – National Minimum Wage and Tipping
Department for Transport – Local Transport Act
HM Treasury - Credit Rating Agencies
Notes to Editors
1. The Better Regulation Executive is taking forward the
Government's better regulation agenda.
http://bre.bis.gov.uk/regulation/
2. Examples of how individuals and businesses are benefiting from changes to regulation can be found on http://www.betterregulation.gov.uk/. The site also invites suggestions for what else can be done to reduce red tape.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.
Department for Business, Innovation & Skills
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment)
| Press Office fax +44 (0)20 7222 4382
www.bis.gov.uk
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Clare Keen
Phone: 020 7215 5971
Clare.Keen@bis.gsi.gov.uk
