(Published in The Echo,
29 May and
17 July 2007)
Largest-ever accumulation of law to be enacted will impact on companies of all sizes; Rickerbys launches campaign to advise businesses of the impact, the requirements and opportunities.
Rickerbys, a leading Gloucestershire-based law firm, has launched a campaign dubbed - BUSINESS Alert - to help businesses prepare for the UK’s largest piece of legislation which will revolutionise the way that companies of all sizes do business.
The Companies Act 2006 is the largest Act ever to come from Westminster. Its purpose is to largely replace the current Companies Acts and to repeal and restate law applicable to companies. It is meant to simplify the administration of companies, particularly for smaller businesses.
The legislation includes more than 1300 sections following 1600 amendments tabled in the Lords. The Bill finally emerged with 925 clauses following seven months in the House of Lords. Rickerbys BUSINESS Alert campaign aims to cut through the red tape and simplify the rules and requirements. The Rickerbys campaign will incorporate a range of plain English guides in conjunction with a landmark conference for local and regional businesses to be held in July.
The Rickerbys team spearheading the BUSINESS Alert campaign includes partners Richard Knight and Edward Davies who are already advising clients on the implications of the new legislation. “This new Act will impact upon every limited company. Directors and owners of companies cannot afford to ignore the new law. This is particularly so in relation to the written statement of directors’ duties,” explains Knight.
The Act received Royal assent in November 2006. Small parts of it have come into force already but the main provisions are due to come into force at three stages, namely October 2007 and April and October 2008.
Provisions are already in force in relation to e-communications with Companies House and to increase the amount of information which companies need to include on their website. In short, companies must include on their websites their full name, registered number and office, contact details such as e-mail address and phone number and their VAT number. If prices appear, they must be clear and unambiguous and say whether they are inclusive or exclusive of tax and delivery costs.
“The balance of the Act which is yet to come into force is substantial. Provisions include a written statement of the duties of directors, reform of company articles, abolition of the need for a memorandum and a company secretary, reform on the general prohibition against companies lending money to directors and new law in relation to privacy for directors. In addition, the law in relation to shares is significantly reformed," commented Davies.
As part of a year-long countdown campaign to assist company directors and owners in getting up to speed with the new law Rickerbys will be running a number of seminars and periodically issuing plain English guidance notes.
Anne Compton, Rickerbys’ managing partner says: “We have established a reputation as an innovative firm offering City-calibre advice to a range of business and corporate clients. This new Act provides a number of opportunities and challenges for businesses and our aim is to help guide the business community through the myriad of legislative detail to ensure that they comply with the new regulations.”
For more information on the Rickerbys BUSINESS Alert events or if you would like to receive the guidance notes, you can do so by emailing register@rickerbys.com, quoting Companies Act 2006.