Companies Act 2006
The Companies Act comprises approximately 1,300 sections and introduces new legislation which reflects the changing business environment.
The Act provides for a single company law regime applying to the whole of the UK, so that companies will be UK companies rather than GB companies or Northern Ireland companies as at present. In Scotland, there are several areas where the Act deals with matters that are devolved.
Summary of the Act
| PART | SUMMARY |
|---|---|
| 1 to 7 | The fundamentals of what a company is, how it can be formed and what it can be called. |
| 8 to 12 | The members (shareholders) and officers (management) of a company |
| 13 and 14 | How companies may take decisions |
| 15 and 16 | The safeguards for ensuring that the officers of a company are accountable to its members |
| 17 to 25 | Raising share capital, capital maintenance, annual returns, and company charges |
| 26 to 28 | Company reconstructions, mergers and takeovers |
| 29 to 39 | The regulatory framework, application to companies not formed under the Companies Acts and other company law provisions |
| 40 to 42 | Overseas disqualification of directors, business names and statutory auditors |
| 43 | Transparency obligations |
| 44 to 47 | Miscellaneous and general |
A company's members
The Companies Act requires that all companies must keep a register of members Read more
A more in depth look at the act
A more in depth look at the Act Read more
Accounting records
The Companies Act prescribes that every company must keep adequate accounting records Read more
An auditor's rights to information
Auditors are appointed by the members and are accountable to them. As a result it is important... Read more
An historical record of the key changes
The Companies Act changes were introduced over almost three years. For the record, we include... Read more
Appointment of auditors
An auditor of a private company must be appointed for each financial year of the company,... Read more
Appointment of directors
The legislation governing the appointment and removal of directors is contained in the... Read more
Changing the company name
The Companies Act permits a company to change its name. The provisions governing name change... Read more
Choosing a name for your company
A company name must not be offensive or suggest any connection with government or public... Read more
Company secretary
A private company is not required to have a secretary, while a public company must have a... Read more
Director's transactions requiring members approval
Where a service contract is, or maybe, longer than two years. This is a complicated area of... Read more
Directors' liabilities
Companies Act provisions protecting directors from liability Read more
Directors' report
One of the requirements of the Companies Act is that the approved accounts must include a... Read more
Directors' service contracts
The company is required to keep directors' service contracts or any memorandum of terms at the... Read more
Do you need an audit?
The turnover threshold which currently exempts most companies from a statutory audit is £6.5... Read more
Filing of accounts and late filing penalties
Companies are automatically fined if accounts are not submitted on time. Accounts should be... Read more
Financial year
A company's financial year is determined by its accounting reference date in each calendar... Read more
General duties of directors
The general duties required of a director are set out in seven sections of the Companies Act. Read more
Group accounts
The requirements of the Companies Act regarding the preparation of group accounts are based on... Read more
Loans to directors
The Companies Act permits a company to make a loan to a director. A loan or guarantee must be... Read more
Records of directors' meetings
The Companies Act requires a company to keep records of its director's meetings. The... Read more
Registered office
The registered office is the official address to which all communications and notices may be... Read more
Related director agreements
The Companies Act requires that a company may not take part in an arrangement under which... Read more
Shares and share capital
Shares in a limited company having share capital must each have a fixed nominal value and a... Read more
Signing of accounts: directors and auditors
Subject to certain exemptions, a company that meets the small company criteria in respect of a... Read more
Summary of sections of the Act
Please click on the links to expand and collapse the following navigation bars for more... Read more
