Podcast transcript

This is the first podcast produced by Companies House, and it provides an overview of the Companies Act 2006.

The background to the introduction of the Act started in 1998, when the government established the Company Law Review Group to consider in detail how company law could be modernised.

The recommendations of the Group became the blueprint for the reforms proposed in the Company Law Reform White Paper, which was issued in March 2005.

Following consultation, the White Paper proposals evolved into a draft Bill, which was then debated during its passage through Parliament. Eight years on from when it first began, the Companies Act 2006 received Royal Assent on 8th November 2006.

The Act, which is essentially a piece of primary legislation, is the longest ever to have been passed through Parliament - over 700 pages, containing 1300 sections, 16 schedules and 47 parts.

A copy of the Act is available on the Office of Public Sector Information website, a link to which is available under the Publications section of these web pages.

The Act will largely apply directly to companies, and will effectively replace existing companies legislation, with the exception of provisions relating to company investigations and to community interest companies.

The intention of the Act is to simplify and modernise the law, especially for small companies by taking a think small first approach.

It aims to enhance shareholder engagement, ensure better regulation, make it easier to set up and run a company, and provide flexibility for the future

Following a comprehensive consultation programme, the vast majority of the Act will not be implemented until October 2008.

This will provide time for the Department of Trade and Industry to produce the necessary transitional arrangements, and allow companies to familiarise themselves in preparation for the changes.

Some of the provisions will be introduced early, which will enable businesses to realise the benefits of the Act by reducing the regulatory burden on them.

The first of these came into force in January 2006, and was an EU Directive enabling companies to make greater use of electronic communications.

Full details of this are available on the DTI website.

Further early implementations will be announced shortly, and details will be available on both the DTI and the Companies House websites.

Companies House will aim to ensure that all companies, directors and customers are aware of the Act, making it easy for them to find out about the changes.

These Companies House web pages include links to relevant Companies Act publications, and together with other sites, can provide you with useful information.

We will update the Companies House website to provide you with everything you need, to ensure you are aware of any changes from the Act, that may effect your company’s transactions with Companies House.