The Government has announced that many of the provisions of the Companies Act 2006 ("the Act") that were due to take effect from 1 October 2008 will be put back by 12 months.
In a written statement, Stephen Timms, the Minister for Competitiveness, explained that the delay is necessary to ensure that Companies House will be ready for the changes to be introduced by the Act which will affect company formation, share capital, company and business names and directors' residential addresses.
There will also be a further period of consultation about the timing of the commencement of other provisions of the Act, including the duties of directors in relation to conflict of interest, and the lifting of the prohibition on financial assistance to private companies. The consultation will allow stakeholders to put their case for a start date of 1 October 2008 for certain provisions. In particular, it looks likely that the Government will come under pressure to relax the rules governing financial assistance to private companies at the earliest opportunity, by abolishing the existing requirement for such companies to follow the whitewash procedure.
Another major tranche of the Act is due to commence on 6 April 2008. It appears, however, that these provisions will take effect as planned – including the parts relating to accounts and reports, audit and the abolition of the requirement for private companies to have a company secretary.
Details of the delay, together with a revised implementation timetable as it currently stands, are available from the Department for Business Enterprise and Regulatory Reform's website (http://www.berr.gov.uk/bbf/co-act-2006).
A further statement is promised for December in order to finalise the implementation timetable for the Act.
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