Final sections of the Companies Act 2006 now in force

07 October 2009



Private companies are reminded that the remaining sections of the Companies Act 2006 came into force on 1 October 2009. The government's intention with the 2006 Act was to reduce bureaucracy and save businesses time and money, though some sections of the legislation do put further administrative burdens on directors.

The provisions of the new Act largely reflect the needs of the modern business: board meetings can be held by electronic means; there is no longer a requirement to have a company secretary; and changes in the personal information held by Companies House means that directors' home addresses will no longer be publically available.

However, whilst the new provisions will automatically apply for companies incorporated after 1 October 2009, to take advantage of many of the new provisions existing companies will have to review and possibly amend their constitution – the company's memorandum and articles of association.

David Smellie, partner in the corporate and commercial team at B P Collins comments: "Whilst the approach taken with the 2006 Act is to be applauded undoubtedly there will be some confusion along the way for those companies which still operate under the previous legislation. Now may be a good time to consider whether a company's existing constitution should be amended and brought into line with the new legislation."

B P Collins' team of experienced corporate and commercial lawyers understand that clients expect pragmatic and commercial solutions. We are committed to building long term relationships that help our clients businesses to grow.

Please contact our corporate and commercial practice group on 01753 279022, complete the online enquiry form or email commercial@bpcollins.co.uk.

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