Changes to the Companies Act 2006
15 October 2008
Some important provisions of the Companies Act 2006 commenced on 1 October 2008 affecting Directors of Companies.
Some important provisions commenced on 1 October 2008. These include:
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The general duties of directors in respect of conflicts of interest;
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The new procedure for private companies to make capital reductions supported by a solvency statement instead of by a court order;
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Companies will have to have at least one natural person as a director, so a company cannot be a sole director of another company (some existing companies will have more time before the rules change);
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There is a new minimum age of 16 for directors ;
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The restrictions under the Companies Act 1985 on financial assistance by private companies for the acquisition of their own shares will also be repealed with effect from 1 October 2008.
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Directors must have a Directors Service Agreement
Also, there were changes to the Trading Disclosures under the Companies Act that affects your business' electronic communications, that includes websites.
Please click here for a checklist to help you review your Directors Statutory Duties and extract from the Companies Act or click here for an overview of the Trading Disclosure changes that you might find helpful.
As we have vast experience in setting out Directors Duties in a Directors Service Agreement contact us for help in complying with this change in the Companies Act.