New provisions to the Companies Act 2006

07/10/2008

New provisions introduced under the Companies Act 2006 have now come into effect.

Under the new rules, both private and non-traded public companies will only need to provide the names of shareholders, but not their addresses. Traded public companies will have to provide names and addresses for those holding at least 5 per cent of any share class.

The changes introduced will now combine subsequent regulations to specify the information that incorporated UK companies must include on all business documentation. Another new requirement is that the companies must respond within five days to written requests for information regarding company record inspections.

The 2006 Act has introduced a new way for private companies to reduce the amount of their share capital. Private companies, as an alternative to passing a special resolution and obtaining court approval, now have the option of reducing share capital by special resolution supported by a solvency statement made by the directors. The solvency statement route provides a simpler and cheaper means for a company to reduce its share capital. Private companies will also have the option to provide financial assistance to acquire their own shares.

All appointed company directors must now have a minimum age of 16 years old.