12.12.2006 - Directors beware : watch out how you use your Company Jet or even the Company photocopier!

Companies Act 2006

The long awaited Companies Act 2006 has received royal assent. The Act makes major changes to companies law and will be brought into force in phases.

Bryan Johnston a partner in Goodys solicitors says: "For the first time ever, the duties of directors of limited liability companies will be set out in one place. The Act provides a full description of those duties. Shareholders have a right to sue directors who breach those duties. It also removes the legal requirement to have a company secretary. Directors have to act in a fair way in relation to a company e.g. not to make private use of corporate jets. A new system of communication with shareholders is set up including via email which should make communication easier. New model Articles of Association are included in the Act which will help private companies and the requirement to have an annual general meeting of shareholders is removed unless a company wishes to hold one. A controversial late amendment is a requirement for public companies to report significant commercial contracts. There is no need to panic as the Act will be brought into force in stages, but now is a good time to obtain some legal advice on the changes the Act has brought about and also to check your own compliance with current company law."

For further information call Bryan C Johnston on 01206 577676 

Did you know..?

The current Inheritance Tax Threshold is £325,000