The Government confirmed yesterday, 7th November, that implementation of parts of the new Companies Act will be delayed for a year – until October 2009. It was feared that companies might incur “unnecessary risks or costs”, so they decided to delay implementation. Reaction from the business community has centred on the higher administrative costs consequent upon the delay.
Next October should be seeing the introduction of new, simplified constitutions for limited companies but this will now only take effect in 2009, 3 years after the Act was passed.
Also postponed is the new rule that the home address of directors of a company will no longer have to be on the public record. This was included in the 2006 Companies Act largely to protect directors of those companies who have had their homes targeted by animal rights activists. On a more mundane level, home addresses can be used by those who want to return unsolicited junk mail: it can be more effective than sending it back to the company’s head office!
The new law is the biggest single act ever passed by Parliament and has wide-ranging implications for companies, shareholders and investors. See our earlier posting for more information.
