The Companies Act 2006 (the "Act"), which applies to both public and private companies, is the largest piece of legislation that the UK has ever seen. It will replace the majority of the existing Companies Acts. Consequently, there will be significant changes in the way that many parts of different companies operate, including fundamental activities such as how companies engage with third party entities, corporate governance and accounting.
In general, the Act is intended to make company law simpler for private companies.
Some parts of the Act are already in force, but the majority will be implemented in stages starting from October 2007, then in April 2008 and October 2008.
The Act will be particularly relevant to the following generic activities.
- Statutory financial reporting
- Corporate finance
- Managing shareholdings in third party entities