Company law not Parkinson's law

What takes eight years to prepare and still isn’t complete?

No – it’s not the new Wembley Stadium!

It is the Company Law Reform Bill, which now (March 2006) is at the Committee stage in the House of Lords.

Its origins go back to March 1998 when the (as it then was) Department of Trade and Industry (DTI) started a fundamental review of company law to see how it could be modernised to provide a simple, efficient cost effective framework for British business in the 21^st centaury.

Subsequent recommendations, reports and White Papers have led to the present bill.

According to the DTI, the key messages ate that company law will be substantially changed to make it easier to understand and more flexible – especially for small businesses.

The plans will help keep the regulatory burden to a minimum and promote shareholder engagement and a long term investment culture.  It aims to make it easier to set up and run a company and to provide flexibility for the future.

Amongst its provisions are “the fundamentals of what a company is, how it can be formed and what it may be called” – and “how companies can make decisions” – as well as “control of political donation and expenditure”!

You may well say, “My priority is to run my business profitably.  How can I be expected to keep up with legislation like this?”

The answer is simple.  Take expert advice.  Make sure that you have a reliable firm of commercial lawyers such as Sandersons on your side.  Whatever your requirements, they can provide an innovative legal solution.

To find out more contact:

Elaine Carson

Sandersons Solicitors

17-19 Parliament Street

Hull

HU1 2BH

Tel:  01482 324662

Email:  enquiries@sandersonssolicitors.co.uk

Source:  Commerce & Industry, June 2006