Newsflash - Final Stages of the Implementation of the Companies Act 2006 delayed

Companies House cannot deal with the full effects of the Companies Act 2006 and therefore the risk that its systems and processes may not be 100% effective by October 2008 means that a delay is on the cards. In a statement delivered by Stephen Timms, the Minister for Competitiveness on the 7th November 2007 it was announced that implementation of the full provisions of the Companies Act 2006 has been delayed until October 2009.

The provisions that concern Companies House, for example those relating to company formation, a company's name, registered office, shareholders, share capital and annual returns are now set to be delayed by a year until October 2009.

Companies House has stated that it is consulting key stakeholders on whether sections that are not directly linked to changes to Companies House systems and processes should still be implemented in October 2008 such as Directors’ conflict of interest duties and the repeal of restrictions in the Companies Act 1985 on financial assistance for acquisition of shares in private companies.

The Government is going to immediately consult “key stakeholders” before confirming this December whether the provisions that do not concern Companies House will be implemented before 2009. What it uncertain now is the timing of the further provisions that were due for October 2008. The areas which require more discussion are those which do not directly concern Companies House operations, which the Minister’s statement identifies as including:

A statement detailing the final commencement timetable will be made to Parliament in December this year which will highlight the plans for the implementation of the final phases of the Act.

Written by David Lee, Solicitor with Newsome Vaughan LLP ’s Business Services Group, Company Commercial section.

Direct Line: 024 7623 4265

Email: davidl@n-v.co.uk