Many people will be aware that the Companies Act 2006 is now fully in force, the final phase of the act being implemented on 1 October 2009
As a result of the changes introduced by the new act it is possible for people responsible for running limited companies to make various changes to the company’s Memorandum and Articles of Association. The changes that you are now allowed to make will not necessarily affect how you run the business. However, some of them are designed to reduce the administrative burden of running a limited company.
Many of the onerous obligations on small companies have now been removed. For example, under the new Act it is no longer a requirement for all companies to have a company secretary. Other changes that may prove popular include the removal of the requirement for all companies to hold an Annual General Meeting and the ability for companies to make better use of Written Resolutions when making shareholder decisions
Many of the advantages of the new Act will not apply to existing companies until their Articles are amended. As a result, whilst there is no requirement for existing companies to change their governing documents, now is a good time to consider whether the Articles of Association could be updated.
As well as allowing various changes to be made to a company’s constitution the new act also imposes additional requirements on companies including new trading disclosures. Previously, all companies have had to publish their name, number and registered office on business letters and this requirement has been extended to electronic documents including any company website.
If you have any concerns about how the new Act will affect your business or if you would like a free half hour to discuss whether your company’s constitution needs amending, call Veitch Penny on 01392 278381.