Companies Act 2006



Companies Act 2006

Introduction

The Companies act 2006 is implemented by Parliament of the United Kingdom. Its main agenda is to design and implement laws pertaining to UK company operations and duties. It is comprised to 1300 sections, 700 pages, and 16 schedules. This act had replaced the previous Companies Act 1985 (Paul Maunders, 2010).

The implementation of Companies Act 2006 has altered several aspects and conducts of business. The private companies under Act 2006 do not require to hire or keep any company secretary, private limited companies are not obligated to held annual general meetings, company's constitutions documents have been replaced like that of Table A to memorandums and model article of association, companies are not obligated to state the entities at the time of assimilation, the duties and responsibilities of director general have been mentioned in law, these directors are not liable for mentioning their personal address in public reports or business matters, however official office address can be utilized instead but personal details are required to submitted for official records of office use only, the age limit for a director is required to be 16 years at least, the time limit of accounts related file submission has decreased from 10 to 9 months in case of private companies, and 7 to 6 months in case of PLCs, companies are liable to utilize electronic resources to communicate and channelize information to shareholders, list of shareholders' can not be provided to 3rd party without approval and receipt of detailed information such as name, address, and reason for obtaining such information, company has got all the rights to deny and reject the request by approaching court, the house names or titles of corporations have been changed as a result of new act 2006, these names have been altered to make it sound rational or casual to what company does, all companies are obligated to fill up the statement of capital whenever get registered initially, or whenever share capital charges, or whenever file annual returns. This step has been declared mandatory to reflect light on shared capital, voting details, and associated rights of divider per share.

Discussion

Role of director under Companies Act 2006

One of the biggest impacts of company's act 2006 is on the broadened and wide roles and responsibilities of directors of registered companies on stock exchanges that are engaged in performing complicated tasks, and possess numerous stakeholders. This act highlights the significance of a director, who is solely responsible for company's performance legally therefore, they are not responsible for dealing with shareholders issues on routine basis but shareholders do own the right to take action against shareholders on breach of duties. A company must have at least a director, a director can be executive or non executive, who is liable to work for his organization on full time basis and vice versa. However, in order to smooth and simplify the operations the board of company elects directors who are responsible for managing a specific task like finance or sales ...