An overhaul of company law has been completed with the final elements of the Companies Act 2006 brought into force today.
The government says the final implementation of the Act will simplify and strengthen the way companies do business.
From today, new businesses will be able to take advantage of simpler model articles, with the aim of making it easier to start up and run companies.
Other measures are intended to help shareholders and investors by encouraging disclosure of strategic, forward looking information through enhanced business review.
Key provisions of the Companies Act 2006 include:
- Creating separate and simpler model Articles of Association for small companies, reflecting how they operate
- Enabling greater use of electronic communications with shareholders therefore avoiding unnecessary cost and time consuming administration
- Making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public
Business Minister Ian Lucas said: "The changes under the Companies Act will help 2.5 million British companies and deliver benefits to business of around £300m a year."
A full guide to what the new rules mean for your business can be found in our Legal section.
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