Companies Act 2006 FAQs
Q. What is the Companies Act 2006?
A. The Companies Act 2006 is a piece of primary legislation that largely applies to companies directly. A number of provisions are currently being set out in secondary legislation, mainly through regulations or orders made by statutory instrument.
Q. Why is the Companies Act 1985 changing?
A. The Companies Act 1985 has been changed in order to meet four key objectives:
To enhance shareholder engagement and a long term investment culture;
Q. Where can I get a copy of the Companies Act 2006?
A. A copy of the Companies Act 2006 is available from the Office of Public Sector Information, or from the Companies Act Publications page of the Companies House website.
Q. Who authorised the changes brought about by the Companies Act 2006?
A. The government established the Company Law Review Group in 1998 to consider in detail how company law could be modernised. The Company Law Review recommendations became the blueprint for the reforms proposed in the Company Law Reform White Paper issued in March 2005. Following consultation, the White Paper proposals evolved into a draft Bill which was then debated during its passage through Parliament. Finally, the Bill received Royal Assent (official approval) on 8th November 2006.
Q. Where can I get more information about the Companies Act 2006?
A. More information about the Companies Act 2006 is available on the Department for Business, Enterprise and Regulatory Reform website at http://www.berr.gov.uk/bbf/co-act-2006/index.html
Q. Is the Companies Act 2006 now complete?
A. No. The Act will be supplemented by a series of Regulations using powers given to the Secretary of State in certain parts of the Act. It will be supplemented by Commencements Orders which bring the Act into force. As they are published, details can be at http://www.berr.gov.uk/bbf/co-act-2006/made-or-before-parliament/page35232.html
Q. What are the main changes in the Companies Act 2006?
A. Some of the key effects resulting from the Act include:
Key benefits: Shareholders