Companies Act implementation timetable revealed
New legislation will benefit small businesses
Small businesses look set to benefit from the Companies Act 2006 which the government has now revealed will be fully implemented by October 2008, with many elements implemented earlier.
The Companies Act will introduce sweeping changes to simplify and improve company law making it easier to understand and more flexible - particularly for small businesses. It is expected to save business up to £250m a year and bring greater shareholder engagement and transparency
The Federation of Small Businesses (FSB), welcomed the announcement of a timetable for the implementation of the Act.
Mike Cherry, FSB Financial Affairs Chairman, said: “The Companies Act is a welcome piece of legislation which should make formal procedures simpler and less burdensome for small businesses. The smallest businesses in particular have been crying out for reform of unnecessary and out-dated company laws."
“It is important for the government to get the implementation and timing of this right, but the signs so far are encouraging. It is equally important that implementation of the deregulatory measures happens sooner, rather than later, so that the benefits can have maximum impact," added Cherry.
Industry and Regions Minister, Margaret Hodge, said: "One of the most important aspects to implementing the Act is providing the least burdensome and most efficient transition to the new regime for existing companies. We have already consulted stakeholders, but the latest document provides the basis for further consultation. We also set out how we propose to deal with secondary legislation under the Act."
Draft regulations, following the policy approach outlined in the consultation document, will be placed on the Department of Trade and Industry's (DTI) website for comment as they become available. Any changes to the policy decided in the light of the consultation will then be reflected in revised drafting of the regulations.
The consultation documents can be found on the DTI website: http://www.dti.gov.uk/consultations/open-consultations/index.html
The deadline for responses is 31 May 2007.
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