legal updates
Thursday, 10 May 2007
new companies act could save you time and paper
CCW's Legal Update 10th May 2007
The new Companies Act, which will implement a fundamental overhaul of UK company law in a number of phases, was passed in late 2006. One of the provisions already in force allows companies to issue AGM and EGM notices and other communications to shareholders by e-mail and via websites. Shareholders may also respond in the same manner. This could mean savings of time and money for many companies compared with the previously required procedure of printing off and packaging together large amounts of paperwork and sending that out via traditional “snail mail”. This process, even with small to medium sized companies, can cause delays in getting shareholder approval for matters of great importance to the company.
The use of e-communications has to be approved formally by the company and the shareholders. There are some additional requirements to be fulfilled if the company’s website is to be used. If you are interested in implementing these changes for your own company or you are a professional advisor who has clients who you think might be interested in taking advantage of these new changes, please contact David Wylie in our corporate and companies team.