More Companies Act measures come into effect

More provisions of the Companies Act 2006 which are designed to reduce the administrative burden on private companies have now come into effect.

Two of the most significant changes mean that firms no longer have to appoint a company secretary unless they want to and they no longer have to have the signature of two directors to execute deeds. The signature of one director will be enough provided that it is witnessed.

Further measures now in force redefine small, medium and large companies by new turnover and balance sheet thresholds. There will need to be some changes to accounting and auditing practices, particularly when listing directors' pay.

Several more Companies Act provisions will come into effect on 1st October this year. These include changes relating to trading disclosures, corporate directors and under-age directors, general duties of directors in respect of conflicts of interest, declarations by a director of an interest in an existing transaction or arrangement, and new procedures for private companies to make capital reductions supported by a solvency statement instead of by a court order.

Please contact us if you would like more information about any aspect of the Companies Act 2006.