UK to remake company law architecture

Author: | Published: 1 Dec 2005

The new Company Law Reform bill, which was introduced into the House of Lords on November 1 2005, will make many changes to existing company law. Some of these are cosmetic; others are more significant. The Department of Trade and Industry claims the bill contains proposals to save businesses up to £250 million ($428 million) a year, including £100 million for small businesses.

The bill is unlikely to be enacted until summer or autumn 2006. There are likely to be many amendments to the current text before then. In a number of areas the bill only gives the government power to make regulations, with further consultation expected before the proposals are introduced. This makes it difficult for companies to plan for changes with certainty.

To the disappointment of many, the bill will not replace the Companies Act 1985. Parts of that act will go, and parts will be amended,...