The Law is changing for Companies… How will it affect your business?

October 2009 is the final implementation stage for the new Companies Act which is designed to make it easier to set up and run a Company.  Good news for businesses but do you know how these changes affect you and your business?

Company Secretary…

Do you know that private companies are no longer required to have a Company Secretary?  You can still choose to appoint a secretary but are not obliged to do so.  If you would like to remove your current Company Secretary you need to file a form at Companies House.

Annual General Meetings…

It is not longer a legal requirement to hold an 'annual general meeting' unless of course you opt to do so.  Please note, that your shareholders can demand an AGM if at least 10% of them decide to do so.

Disclosing personal details…

Previously, Directors were obliged to file a service address (ie., their company address) as well as a residential address on the public record.  Under the new legislation, residential addresses are now held as protected information and will only be available to public authorities and credit reference agencies.

On 1st October a director's current residential address will automatically become the service address.  You can change your details so that it is your business address that is available to the public on the Companies House website from 1st October.

The Law introduces 21st Century technology…

If your shareholders agree, arrangements can be made so that communications can be sent and received in certain ways, one of these is via email.  However, you still need provide all your company details (ie., company name, number, registered office and other particulars) on these communications as you currently do on a letter.

There are many other changes that have come about as a result of the new Companies Act, one of which is greater protection from company fraud, an increasing problem for both small and large organisations. Companies House have set up a scheme to prevent impostors making false claims about your company details.  The scheme is that you agree with Companies House to only file certain documents online, if they then receive a paper form they will raise this with you as a potential hijack.

For more details on any of the above or any commercial matter our Business Law Specialists are on hand to provide expert advice and support for all your business needs.