英国公司法The Companies Act 2006
The Companies Act 2006 (c 46) is an Act of the Parliament of the United Kingdom which forms the primary source of UK company law. It had the distinction of being the longest in British Parliamentary history: with 1,300 sections and covering nearly 700 pages, and containing 16 schedules (The list of contents is 59 pages long) but it has since been superseded, in that respect, by the Corporation Tax Act 2009 .
The Act was brought into force in stages, with the final provision being
commenced on 1 October 2009. It superseded the Companies Act 1985 .
The Act provides a comprehensive code of companyl aw for the United Kingdom, and madec hanges to almost every facet of the law in relation to companies. The key provisions are:
the Act codifies certain existing common law principles, such as
those relating to directors' duties .
it implements the European Union's Takeover and Transparency
Obligations Directives .
it introduces various new provisions for private and public
companies.
it applies a single company law regime across the United Kingdom, replacing the two separate (if identical) systems for Great
Britain and Northern Ireland.
it otherwise amendso r restates almost all of the Companies Act
1985 to varying degrees. [2]
The Bill for the Act was first introduced to Parliament as "the Company Law Reform Bill" and was intended to make wide-ranging amendments to existing statutes. Lobbying from directors and the legal profession ensured that the Bill was changed into a consolidating Act, avoiding
the need for cross-referencing between numerous statutes.
The reception of the Act by the legal professions in the United Kingdom has been slightly lukewarm. Concerns have been expressed that too much detail has been inserted to seek to cover every eventuality. [3] Whereas a complete overhaul of company law was promised, the Act seems to leave
much of the existing structure in place, and to simplify certain
aspects only at the margins. In other areas, it is said to have complicated and obfuscated previously settled law and may make doing business more difficult for those operating small companies.
Contents
[ hide ]
1Implementation
2Directors
3General provisions
4Private companies
5Public and listed companies
6Contents
7See also
8Notes
9References
10External links
[edit ] Implementation
A small portion of the Act came into effect on Royal Assent in November 2006. The first and second Commencement Orders then brought further provisions into force in January 2007 and April 2007. The implementation timetable for the remainder of the Act was announced in February 2007, by Margaret Hodge, Minister for Industry and the Regions. The third and fourth Commencement Orders brought a further tranche of provisions into force in October 2007, and the fifth, sixth and seventh in April and October 2008. The eighth commencement order, made in November 2008, brought the remainder of the Act into force with effect from October 2009.
The staggered timetable was intended to give companies sufficient time to prepare for the new regime under the Act, rather than implementing
all 1,300 sections of the Act on one day.
Another reason for the staggered implementation is that, despite the
Act's size, a great many sections provide for subsidiary legislation to be
brought in by Secretary of State, which has taken time to draft. Implementation of the Act is the responsibility of the
Department for Business, Innovation and Skills .
[edit ] Directors
Main article: Board of directors
The Act replaced and codified the principal common law and equitable duties of directors, but it does not purport to provide an exhaustive statement of their duties, and so it is likely that the commonl aw duties survive in a reduced form. Traditional common law notions of corporate benefit have been swept away, and the new emphasis is on corporate social responsibility . The seven codified duties are as follows:
1.S171 to act within their powers - to abide by the terms of the
company's memoranduma nd articles of association and decisions
made by the shareholders ;
2.S172 to promote the success of the company- directors must
continue to act in a way that benefits the shareholders as a
whole, but there is now an additional list of non-exhaustive
factors to which the directors must have regard. This was one of
the most controversial aspects of the new legislation at the
drafting stage. These factors are:
1.the long term consequences of decisions
2.the interests of employees
3.the need to foster the company's business relationships
with suppliers, customers and others
4.the impact on the community and the environment
5.the desire to maintain a reputation for high standards of
business conduct
6.the need to act fairly as between members
3.S173 to exercise independent judgment - directors must not fetter
their discretion to act, other than pursuant to an agreement
entered into by the company or in a way authorised by the
company's articles
4.S174 to exercise reasonable care, skill and diligence - this must
be exercised to the standard expected of
1.someone with the general knowledge, skill and experience
reasonably expected of a person carrying out the functions
of the director (the objective test) and also
2.the actual knowledge, skill and experience of that
particular director (the subjective test)
5.S175 to avoid conflicts of interest - methods for authorising
such conflicts by either board or shareholder approval are also
to be introduced
6.S176 not to accept benefits from third parties
7.S177 to declare an interest in a proposed transaction with the
company- there are to be carve outs for matters that are not
likely
to give rise to a conflict of interest, or of which the directors are already aware. There will be an additional statutory
obligations to declare interests in relation to existing
transactions.
Although the changes to directors' duties were the most widely publicised (and controversial) feature of the legislation, the Act also affects directors in various other ways:
S239 The shareholders' ability to ratify any conduct of a
director (including breach of duty, negligence, default or breach of trust) is regulated by the statute, although S 239.7 leaves
the door open for commonla w principles, previously the only
guide on this. Under the Act, directors who are also
shareholders, or persons connected to them, are not entitled to
vote in relation to any ratification resolution concerning their
actions.
Existing restrictions on companies indemnifying directors against certain liabilities were relaxed to permit indemnities by group
companies to directors of corporate trustees and occupational
pension schemes .
SS261-3 The Act gave shareholders a statutory right to pursue
claims against the directors for misfeasance on behalf of a
company (a derivative action ), although the shareholders need
the consent of the court to proceed with such a claim.
Certain transactions between the company and its directors which
were previously prohibited by law have become lawful subject to
the approval of shareholders (for example, loans from the company to its directors)
The Act requires at least one director on the board o f the company to be a natural person, although corporate directors are still
permitted.
The current age restriction of 70 for directors of public
companies has been abolished. A new minimum age of 16 has been
introduced for all directors who are natural persons (S157).
Directors will have the option of providing Companies House with
an address for service, which will in future enable their home
addresses to be kept on a separate register to which access will
be restricted.
[edit ] General provisions
The Act contains various provisions which affect all companies irrespective of their status:
Companyf ormation - the procedure for incorporating companies
will be modernised to facilitate incorporation over the Internet .
It
will become possible for a single person to form a public
company. Constitutional documents - a company's articles of
association will become its main constitutional document, and the company's memorandum will be treated as part of its articles. New model articles for private companies to be madeu nder the Act are intended to reflect better the way that small companies operate,
and will replace the existing Table A. Existing companies will be permitted to adopt the new model articles in whole or in part.
Corporate capacity - under the new Act a company's capacity will
be unlimited unless its articles specifically provide otherwise,
thus greatly reducing the applicability of the ultra vires
doctrine to corporate law and removing the need for an
excessively long objects clause in the Memorandum of
Association .
Execution of documents - Formalities for execution as a d eed are
to be further revised, so that a single director can execute a
document as a deed on behalf of the company by a simple signature in the presence of a witness.
Share capital - the requirement for an authorised share capital
will be abolished. Companies will be able to redenominate their
share capital from one currency to another without an order of
the court. Distributions in kind - The Act addresses the current
uncertainty
in the law in relation to the transfer of non-cash assets by a
company to a shareholder, and whether this should be treated as a distribution. [4]
Shareholder meetings - The Act enables shareholder meetings to be held more quickly. Special resolutions now require only 14 days'
notice unless proposed at an AGM.
Shareholder communications - The Act made it easier for companies to communicate electronically (e.g. by email or by website) with
their shareholders by express agreement (which agreement can be
obtained under the articles, or by the shareholder failing to
indicate that they do not wish to communicate via the website, as well as by more conventional methods).
Auditor's liability - auditors are now permitted to limit their
liability for claims in negligence , breach of
trust or breach of
duty so long as:
o the shareholders have approved the limitation in advance.
o the court considers the limitation of liability to be 'fair and reasonable' [5]
This change was madea fter intensive lobbying by the accounting profession in the United Kingdom.
CompanyN amesA djudicator - Section 69 of the Act provides for
the appointment of a Company Names Adjudicator. A C ompany Names
Tribunal was established on 1 October 2008 through which the
Company Names Adjudicator will administer his powers via the U K
Intellectual Property Office u nder the tribunal. Section 69 has
expanded the grounds under which any person can object to a
conflicting company name registration under the Act.
[edit ] Private companies
Main article: Private company limited by shares
One of the more touted aspects of the new legislation was the simplification of the corporate regime for small privately held companies. A number of the changes brought about by the Act apply only to private companies. Significant changes include:
Companys ecretaries - a private company no longer needs to
appoint a company secretary , but may do so if it wishes.
Shareholders' written resolutions - the requirement for unanimity in shareholders' written resolutions was abolished, and the
required majority is similar to that for shareholder meetings - a simple majority of the eligible shares for ordinary resolutions,
or 75% for special resolutions.
Abolition of AGMs- private companies are no longer required to
hold Annual General Meetings, although they can elect to provide
for them in their articles if they wish.
Short notice of meetings - private companies can convene meetings at short notice where consent is given by holders of 90%b y
nominal value of shares carrying the right to vote.
Allotment of shares - where private companies have only one class of shares, the directors will have unlimited authority to allot
shares unless the articles otherwise provide.
Financial assistance - the Act abolishes the prohibition on
private companies providing financial assistance for the purchase of their own shares, and the related "whitewash" exemption
procedure.
Reduction of share capital - private companies will be able to
reduce their share capital without the need to obtain a court
order. Filing of accounts - the period in which accounts must be filed has been reduced from 10 months to 9 months from the
financial year end.
[edit ] Public and listed companies
Main article: Public limited company
The Act also seeks to promote greater shareholder involvement, and a number of new requirements are introduced for public companies, some of the provisions of which only apply to companies whose shares are listed on the main board of the London Stock Exchange (but, importantly, not
to companies whose shares are listed on AIM).
Business review - the Act imposes additional requirements for
companies listed on the main board of the LSEi n their annual
report and accounts. These now include:
1.main trends and factors likely to affect future development,
performance and position of the business;
https://www.wendangku.net/doc/e218666495.html,rmation on environmental matters, employees and social
issues; and
https://www.wendangku.net/doc/e218666495.html,rmation on contractual and other arrangements essential to
the company's business.
AGMa nd accounts - main list companies will be required to hold
their AGM and file accounts within 6 months of the end of the
financial year. They will also be required to:
1. publish their annual report and accounts on their website;
2. disclose results of polled votes at general meetings on their
website;
3.give certain minority shareholders the right to require
independent scrutiny of any polled vote, the results of which
must be published on the company's website.
Political donations and expenditure - the Act contains
simplification and clarification of the existing provisions
requiring shareholder approval for political donations and
expenditure, and clarifies a number of grey areas (such as
expenditure relating to trade unions ).
Enfranchising indirect investors - nominee shareholders of main
list companies will be able to nominate persons on behalf of whom they hold shares to receive copies of company communications and
annual reports and accounts. All companies will also be able to
include provisions in their articles to identify some other party to exercise additional rights of the shareholder. This is to
address the concern that shares in publicly listed companies are
frequently held in an intermediary's name, which makes it more
difficult for the beneficial owners of the shares to exercise
their rights as shareholder.
Voting by institutions - the Act empowers the government to
introduce regulations in the future that would require
institutions to disclose how they have voted. The government has
indicated it will only introduce such regulations after full
consultation and if a voluntary disclosure scheme does not work.
Paperless share transfers - the Act gives the government power
to
make regulations requiring (as well as permitting) paper-free
holding and transferring of shares in main list companies. Somel
aw firms [who?] have expressed reservations as to how paper-free
holding and transfers would work in practice.
Transparency Obligations Directive - the Act brings into force
the European Directive imposing obligations on main list
companies in relation to financial reporting, disclosure of major acquisitions or disposals of its shares and the dissemination of
information about the company to its shareholders and the public
generally. The Act gives the Financial Services Authority power
to make rules to
implement the requirements of the Directive, which would be
implemented by way of changes to the existing Listing Rules and
Disclosure Rules. The Act also introduces a statutory
compensation scheme for misleading or inaccurate statements in
reports.
Takeovers - the EU Takeover Directive was implemented by interim
regulations in the United Kingdom in May 2006. The Act extends
the statutory basis for the regulations in relation to certain
matters, such as the statutory footing of the Takeover Panel, and the City Code on Takeovers and Mergers. It also extended the
"minority sweep up" provisions which were introduced by an
amendment to the
Companies Act 1985, and addresses certain practical problems
which had arisen in relation to their operation.
[edit ] Contents
Part 1 General introductory provisions, ss 1-6
Part 2 Company formation , ss 7-16
Part 3 A company's constitution, ss 17-38
Part 4 A company's capacity and related matters, ss 39-52
Part 5 A company's name, ss 53-85
Part 6 A company's registered office, ss 86-88
Part 7 Re-registration as a means of altering a company's status, ss 89-111
Part 8 A company's members, ss 112-144
Part 9 Exercise of members' rights, ss 145-153
Part 10 A company's directors, ss 154-259
Part 11 Derivative claims and proceedings by members, ss 260-269
Part 12 Company secretaries, ss 270-280
Part 13 Resolutions and meetings, ss 281-361
Part 14 Control of political donations and expenditure, ss 362-379
Part 15 Accounts and reports, ss 380-474
Part 16 Audit , ss 475-539
Part 17 A company's share capital, ss 540-657
Part 18 Acquisition by limited company of its own shares, ss 658-737
Part 19 Debentures , ss 738-754
Part 20 Private and public companies, ss 755-767
Part 21 Certification and transfer of securities, ss 768-790
Part 22 Information about interests in a company's shares, ss
791-828
Part 23 Distributions , 829-853
Part 24 A company's annual return, ss 854-859
Part 25 Company charges, ss 860-894
Part 26 Arrangements and reconstructions, ss 895-901
Part 27 Mergers and divisions of public companies, ss 902-941 Part 28 Takeovers etc., ss 942-992
Part 29 Fraudulent trading , s 993
Part 30 Protection of membersa gainst unfair prejudice , ss 994-999
Part 31 Dissolution and restoration to the register, ss 1000-1035 Part 32 Company investigations: amendments, ss 1035-1039
Part 33 UK companies not formed under companies legislation, ss 1040-1043
Part 34 Overseas companies, ss 1044-1059
Part 35 The registrar of companies, ss 1060
Part 36 Offences under the Companies Acts, ss 1121-1133
Part 37 Companies: supplementary provisions, ss 1134-1157
Part 38 Companies: interpretation, ss 1158-1174
Part 39 Companies: minor amendments, ss 1175-1181
Part 40 Company directors: foreign disqualification etc., ss 1182-1191
Part 41 Business names, ss 1192-1208
Part 42 Statutory auditors , ss 1209-1264
Part 43 Transparency obligations and related matters, ss 1265-1273
Part 44 Miscellaneous provisions, ss 1274-1283
Part 45 Northern Ireland ss 1284-1287
Part 46 General and supplementary provisions, ss 1288-1292
Part 47 Final provisions, ss 1298-1300
Schedules 1-16
[edit ] See also
UK company law
US corporate law German company law European company law Companies Act Shareholder Rights Directive 2007/36/EC