DEPARTMENT OF TRADE
AND INDUSTRY News Release (Reference P/2006/77) issued by The
Government News Network on 5 April 2007
INFORMATION NOTE
(2nd Phase of Companies Act Implementation)
The Takeover Panel's regulatory activities will be placed on
a statutory framework for the first time from tomorrow when the
second phase of the Companies Act 2006 comes into effect.
Part 28 of the Act gives the Takeover Panel the power to make
statutory rules while keeping the right to determine its own
constitutional and operational framework. Previously the rules on
takeovers were set out in the Takeover Code, which historically
had no statutory basis.
This and other changes will further boost the benefits to
business from the reform of company law undertaken by the
Government in the Companies Act 2006.
An effective, well run system of takeover regulation is crucial
for the confidence and well being of financial markets. The
Takeover Panel has made an important contribution to the
competitiveness of UK financial markets over the last 40 years.
These provisions will help ensure it continues to be a strong,
independent and highly regarded organisation.
Also from tomorrow company directors will no longer have to
disclose their age if they are over 70. The prohibition on
directors dealing in share options will also be removed and for
non quoted companies directors and their families will no longer
be required to disclose their share dealings.
In addition, the right to set up and register a business as a
Community Interest Company will be extended to Northern Ireland.
This will make it simpler and easier to establish a business whose
profits and assets are to be used for the benefit of the community.
Notes to editors
1. Information on the history, aims and current functions of the
Takeover Panel can be found on its website: http://www.thetakeoverpanel.org.uk.
2. Part 28 (Takeovers) is connected with implementation of the EU
Takeovers Directive. These provisions, placing the regulatory
activities of the Takeover Panel within a wholly statutory
framework, will replace Regulations which came into force on 20
May last year and implemented the Directive on an interim basis
while the Companies Act completed Parliamentary passage (SI 2006/1183);
3. The full changes coming into effect tomorrow can be found on
the DTI website: http://www.dti.gov.uk/bbf/co-act-2006/.
Department of Trade and Industry
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