Companies Act changes – 6 April 2008

April sees the implementation of the next stage of changes to the Companies Act affecting private companies.  There is an array of good advice available, but the key elements to bear in mind as set out by the Institute of Chartered Accountants in England and Wales (ICAEW) are as follows:

– companies will have to file annual accounts with Companies House 9 months after the end of their yearly accounting period;

– the role of Company Secretary will become optional making it easier for single person companies to operate;

– Company Secretaries will now be able to give a service address for publicly available details to ensure greater privacy.

Other changes to the Act which have already been introduced include:

– private companies no longer have to hold an AGM unless specifically required to do so by their articles;

– company registration number, registered office and country of registrations needs to be on all company literature including websites and emails;

– company directors can now work until after the age of 70, but young directors under the age of 16 will have to resign from 1 October 2009;

– loans of up to £10,000 can be made to directors without shareholder approval;

– from 1 October 2009 companies will be able to provide financial assistance to purchase their own shares;

– from 1 October 2009, it will no longer be possible to protect personal details of the company owner by using another company to fill the post of sole director.