Companies Act

The Companies Act comprises of approximately 1,300 sections and introduces new legislation which reflects the changing business environment.

The Act provides for a single company law regime applying to the whole of the UK, so that companies will be UK companies rather than GB companies or Northern Ireland companies as at present. In Scotland, there are several areas where the Act deals with matters that are devolved.

Summary of the Act

PART SUMMARY
1 to 7 The fundamentals of what a company is, how it can be formed and what it can be called.
8 to 12 The members (shareholders) and officers (management) of a company
13 and 14 How companies may take decisions
15 and 16 The safeguards for ensuring that the officers of a company are accountable to its members
17 to 25 Raising share capital, capital maintenance and company charges
26 to 28 Company reconstructions, mergers and takeovers
29 to 39 The regulatory framework, application to companies not formed under the Companies Acts and other company law provisions
40 to 42 Overseas disqualification of directors, business names and statutory auditors
43 Transparency obligations
44 to 47 Miscellaneous and general

 

The Companies Act requires that all companies must keep a register of members
A more in depth look at the Act
The Companies Act prescribes that every company must keep adequate accounting records
Auditors are appointed by the members and are accountable to them. As a result it is important that auditors are given the information they consider relevant to the fulfilment of their duty to members.
The Companies Act changes were introduced over almost three years. For the record, we include a historical account of when the various changes were enacted.
An auditor of a private company must be appointed for each financial year of the company, unless the directors resolve otherwise on the grounds that audited accounts are unlikely to be required.
The legislation governing the appointment and removal of directors is contained in the Companies Act in Part 10 and comprises nine chapters and over 100 sections. Inevi