Companies Act 2006
A Summary Of The Act
The Companies Act 2006 remains the origin of UK law which assists as the principal source of company law. The act remains the longest in the history of Parliament, built around some 1,300 sections. The act had schedules now amended by the 2009 Corporation Tax Act.
The amendment to the 2006 act changed gradually. The final amendment finalised October 2009. These changes affected most aspects of UK company law.
The key changes being:
- Extra stipulations for private and public registered UK companies
- Executed The European Union’s Transparency Obligations and Takeover Directives
- Arranged (laws or rules) into a systematic code relating to various common law principles that existed along with the duties
of UK directors
- Revised or reinstated most features of the 1985 Companies Act
- Implemented a single united UK company law regime. Northern Ireland treated separately to the UK
The Companies Act 2006 – How The Act Affects Directors?
Prior to the act, directors duty in the main led by case law. The 2006 Act codified the duties of directors into a statutory statement.
The main duties :
At all times;
- Ensure as a director you act within your powers.
- Always promote the success of the company, ensuring a benefit for shareholders.
- Ensuring independent judgement at all times.
- Maintaining you ensure reasonable care, diligence & skill at all times.
- Conflicts of interest must at all times be avoided.
- Third-party benefits not to be accepted at any time.
- Make known interest transactions or arrangements with the company. Duties ensure minimum standards directors adhere to.