October 2007

The 1st October 2007 saw yet more changes as the Companies Act 2006 continued to be implemented.

  • The Register of Members  – Previously members of the public were allowed to make reasonable requests to view a company’s register of members. From October 2007 if a request is made by an person that is not involved with the company the company can now ask for the applicants name and address, or if an organisation an individual’s name, plus whether the information will be shared with anyone else and if so, to whom and for what purpose.
    It is an offence to make a false statement when providing the details required for disclosure. Any false statement may lead to a prosecution.

    When this information is supplied the company must, within 5 working days, either comply with the request or apply to the courts to restrict the access to the register.
  • The Business Review and Directors Report - All company accounts, with reporting periods beginning on or after 1st October 2007, will be expected to include a Business Review, apart from small company accounts.
    The majority of companies registered in the UK are small companies and as such will fall outside of this requirement.The Business Review is a fair review of the company’s business within the reporting period. It must be a balanced and comprehensive analysis of the development and performance of the company, with a description of the principal risks.  

  • Table A  – This was amended where sections were in conflict with the elements of the Companies Act 2006 that were being introduced in October 2007.
  • Resolutions – There were several changes to company resolutions. One of the most significant being that a majority will be similar to that for shareholders’ meetings – a simple majority of eligible shares for ordinary resolutions, or 75% for special resolutions. The wording on special and written resolutions was also adjusted.
  • Form 318 - This form will continue to be used to notify the location of director’s service contracts under new section 228, and directors indemnities under 237 until 30th September 2009. However the notification should only be used when the register is returning to the registered office, as regulations under 1136 SAIL (Single Alternative Inspection Location) are introduced on 1st October 2009.
  • Directors Duties – Directors’ general duties to their companies are, for the first time, comprehensively set out in the Companies Act 2006. The general duties of directors have been developed as until now they were in case law. See the Department of Business, Enterprise & Regulatory Reform website www.berr.gov.uk
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