The Small Business, Enterprise and Employment Act 2015: legal changes for the attention of company directors
The Small Business, Enterprise and Employment Act 2015 received Royal Assent on 26 March 2015 and introduced a number of legislative changes, some of which came into force last month (October 2015) and others which will be phased in over the coming months.
From October 2015
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Companies House now hides the date of birth of a director. The information still needs to be supplied upon incorporation/appointment, but remains private.
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'Accelerated Strike Off'. The time it takes to strike a company off the register has been reduced.
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Personal information requirement abolished. The personal information required by Companies House in respect of a director (e.g. eye colour, mother's maiden name etc.) has been abolished and replaced by a tick box to confirm that authority has been given by an individual to be appointed as a director of the company.
From December 2015
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Registered Office Disputes. Any occurrences where a company registers an address with Companies House without authority to do so will be dealt with by way of a third party complaint. Any incorrect registered office address will be replaced with the address of Companies House (in Cardiff, Edinburgh or Belfast, depending on the company’s location).
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Director Disputes. A director will have the power to remove themselves from the Companies House register if they have been appointed by a company without authority to do so. Companies House will send out a letter to a director where an appointment has been made in their name; this will then allow them to dispute the appointment if necessary.
From January 2016
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'People with Significant Control’ (PSC). Companies will need to register PSC with Companies House in addition to the registration of directors and members (likely to take effect from April 2016). PSC are those who (1) own over 25% of shares, (2) have over 25% of the voting rights, (3) have the power to appoint and/or remove directors, and (4) have significant interest or control in the company. Further guidance on PSCs will follow.
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Annual Return (AR01) filing will be replaced by 'check and confirm’. PSC will feature here.
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Companies can opt in to receive routine correspondence and notices via electronic communication, instead of receiving letters.
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Companies can provide certain optional information to Companies House, such as trading address, telephone number and email address.
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Directors’ Misconduct. The disqualified directors regime will be updated and strengthened.
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Simplification of the Statement of Control. There will be no need to report on an annual basis if there has been no change within the 12 month period.
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Abolishment of corporate directors (still subject to debate).
Should you have any queries regarding the subject matter of this article, or corporate governance generally, please contact Keith Kennedy (Partner in the Corporate and Commercial Department) at keith.kennedy@pearsonlegal.co.uk or by telephoning Keith on 0161 684 6942.
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. Pearson Solicitors and Financial Advisers LLP or any of its members or employees assume no responsibility for its accuracy or correctness. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.
