This autumn sees the final stage in implementation of the Companies Act 2006 – nearly at the 3rd anniversary of Royal Assent. This time lag has been due to the size and far-reaching effects of the Act. Its 1300 sections (with 16 Schedules) defy any attempt at a brief summary, but a few of the major changes are as follows:

Already in force

• Deregulatory changes, particularly for private companies, affecting management of the company’s share capital and other matters
• Statutory presumptions as to certain powers or authorities which apply unless the company chooses to exclude them
• Directors’ general duties to the company are for the first time codified in statute, including a changed approach to dealing with conflicts of interest
• Shareholders’ engagement with their company’s affairs is promoted and there is a statutory basis for derivative actions against wrongdoing directors
• Shareholders’ decision-making is simplified, with the Act effectively dispensing with the need for general meetings

As from 1 October 2009

• Forms and documents to be filed at Companies House on formation and subsequently change substantially
• The Memorandum of Association is cut down and ceases to be part of the constitution
• Table A will be replaced as the model articles for the constitution of a new company

As the implementation process has progressed there have been numerous commencement orders, one aspect of which has been to provide for how existing companies are affected by the new law.

The CLT Online and Harvey Legal Training online training and reference guide is designed to help you navigate this complex area. To see it's full potential take the 12 minute sampler and experience the quality of the training.

To view a video with Andy Harvey of Harvey Legal Training on key aspects of the Companies Act and how the changes are affecting businesses, please click here