Pain and litigation

Author: | Published: 1 Oct 2007

The slightest mention of the Companies Act 2006 to fellow practitioners can draw a pained expression. The reasons range from the sheer size of the statute and getting to grips with the underlying legislation (typically European directives) that the 2006 Act has implemented, to the fact that most of us have got to know the Companies Act 1985 very well, and teaching old dogs new tricks is hard to do.

The overall objective behind the 2006 Act was to simplify and modernize English company law so it meets today's business needs and provides flexibility for the future; which is incredulous when you consider that the statute consists of 1,300 sections. Other objectives included the desire to make it easier to set up and run a company and enhance shareholder engagement.

Whilst the 2006 Act has introduced a lot of quite sensible provisions in pursuance of these objectives (such as...