Changes announced to the Companies Act 2006 implementation timetable - Many provisions postponed until October 2009
On 7 November 2007, the government announced that most of the provisions of the Companies Act 2006 due to be commenced on
1 October 2008 will now be commenced on 1 October 2009. The delay in implementation results from the need to ensure that the necessary changes to the Companies House systems and processes are in place.
The government is consulting on whether some provisions due to be commenced on 1 October 2008 (and which do not necessitate changes to Companies House systems) could still be commenced on that date. A further statement is due in December this year setting out the final commencement timetable.
What is affected?
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The implementation of provisions on 6 April 2008 (including those on accounts, audit, distributions and company secretaries) is unaffected by this and will still go ahead. This will include the new provisions on execution of deeds.
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The provisions postponed until 1 October 2009 include those relating to company formation, share capital, company and business names and directors' residential addresses.
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The provisions which could still be implemented on 1 October 2008 include directors' duties in respect of conflicts of interest, declaration of interests in an existing transaction or arrangement and the changes relating to financial assistance. |
Read more (see our updated summary of the headline changes under the Companies Act 2006).
What are the consequences?
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For many existing companies, the consequences of the delay to
1 October 2009 in relation to company formation, share capital, company and business names and directors' residential addresses will not be great, although it does mean that the relaxation for private companies in relation to the allotment of shares and reduction of capital and the possibility of increased privacy for directors is postponed for a further year.
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Companies will look forward to gaining clarity in December 2007 on what the timetable is to be for implementation of the provisions on directors' conflicts of interest and declaration of interests, as they will need to review their articles and their procedures in time for the introduction of the new regime.
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In December 2007 we should also find out when the changes relating to financial assistance will occur. These will represent a significant lessening of the regulatory burden for financing and executing many M&A transactions. |