Companies Act 2006 – Revised Commencement Dates

In early November the Government announced that the final implementation date for the Companies Act 2006 was to be put back from October 2008 to October 2009. The reason for the delay was put down to the fact that Companies House would not have sufficient systems in place to deal with all the requirements of the Act. The Government did recognise though, that some of the provisions that were to be implemented in October 2008 would not impact on Companies House and so further consultation was to take place as to whether October 2008 could be used as an implantation date for certain provisions of the Act.

On 13 December 2007 Stephen Timms, the Minster for Competitiveness, issued a written statement stating that the Government had completed their consultation with relevant stakeholders.  Stephen Timms announced that the following provisions will be implemented with effect from 1 October 2008:

• sections 69 to 74 - objection to company’s registered names;
• sections 82 to 85 – trading disclosures;
• sections 155 to 159 – provisions relating to corporate directors and under age directors;
• sections 175 to 177 – general duties of directors in respect of conflicts of interest and accepting benefits from third parties;
• sections 182 to 187 – declaration by a director of an interest in an existing transaction or arrangement;
• the repeal of the prohibition on private companies giving financial assistance for the acquisition of shares.

In addition to the above, and "in view of the strength of business representations" the Government has decided that the procedure for private companies to make capital reductions supported by a solvency statement, instead of a court order, will also be implemented in October 2008.  Although this procedure will impact on Companies House, the Government is confident that the relevant systems for this particular part of the Act can be up and running by October 2008.

Those provisions of the Act that are to be implemented in April 2008 will still come into effect in April although the Government have stated that the sections 121 and 128 (register of members: removal of entries relating to former members) and sections 811(4), 812 and 814 (inspection of register of interest in a company’s shares) will be implemented in addition to those already announced as being brought into force in April 2008.

All those provisions not commencing in neither April 2008 nor October 2008 will be implemented in October 2009.

For further information contact Guy Nesbitt on 0118 955 3089 or guy.nesbitt@morgan-cole.com.