Progress to date

At the time of writing five commencement orders had been issued, bringing individual sections of the new Act into force.

Some of the key changes already introduced include:

• electronic communications
• Some of the first provisions of the new Act to come into force allowed companies to make greater use of electronic communications. Electronic communications with shareholders by email, or via a website with notification, are now possible where an individual shareholder consents. Individual shareholders who prefer not to use this option have the right to request continued communication as hard copy.
• a new statutory statement of directors’ duties
• amendments to the rules for directors, including the removal of the general prohibition on companies providing loans to directors
• much of the new law covering company meetings and resolutions.
  We take a closer look at this area overleaf.

What’s next?

The next important implementation date is 6 April 2008 when the new legislation in respect of reports, accounts, audits and auditors will be introduced. The government has also announced that the repeal of the restrictions under the Companies Act 1985 on financial assistance for the acquisition of shares in private companies, including the ‘whitewash’ procedure, will be implemented from October 2008.