Home > SME News > SMEs come to terms with Companies Act

SMEs come to terms with Companies Act

Published On 26 January 2007 at 16:28:03

Passed into law last year, the effects of the Companies Act are now being felt.

And Accountancy Age warns its readers that it is likely to be small businesses that are most affected.

Since January 1st, all websites, business letters and order forms have been required to show the company's full name and place of registration, company number and registered office.

Despite the risk of a fine for non compliance, there has still been confusion about when these rules apply.

Law firm Pinsent Mason gives this advice to Accountancy Age: "Rather than worry whether an email sent by a company amounts to a 'business letter' or not, ensure that all emails sent on company business contain these details in the standard rubric at the end."

Passage of the law was controversial and the Confederation of British Industry has welcomed the eventual decision to allow directors to keep their home address private.

However, directors must have regard for both the long-term and short-term interests of the company, under the codification statue of directors' fiduciary duties

As Philip Bovey, the lawyer on the Department of Trade and Industry's companies bill team, recently told the magazine's Insider Business Club: "The existing law was drawn up for large public companies.

"They are no longer the typical company. The typical company is now the small private company and we have set out to start with their concerns and interests and we have got rid of a number of concepts which may not be real-life, day-to-day practice of small companies but which are fundamental to the Act."

 

Related SME News:

• Postal strike 'would hit SMEs hard'
  7 June 2007 at 16:23:50
  Any strike by Royal Mail staff could be disastrous for small and medium-sized enterprises in the UK, a business group has warned.
• SMEs 'encouraged to focus on emerging markets'
  7 June 2007 at 08:56:14
  Business groups have welcomed the findings of the Trade & Industry Select Committee's report on UK trade and investment (UKTI).
• Government acts to protect SME workers
  6 June 2007 at 09:00:30
  The government has launched a pilot scheme to try and crack down on the bosses of small and medium-sized enterprises (SMEs) who treat their staff poorly.
• Bosses 'can say no' to flexible work requests
  30 May 2007 at 16:12:02
  The bosses at the UK's small and medium-sized enterprises should not be afraid to refuse their staff's requests for more flexible working arrangements if they believe they will harm business.
• Manchester SMEs 'oppose road pricing'
  30 May 2007 at 08:51:09
  The vast majority of small business owners in the Manchester area are opposed to the proposed road pricing scheme which could be introduced in the city.
• Paternity rules 'will harm SMEs'
  29 May 2007 at 14:36:30
  New paternity regulation will harm the productivity of the UK's small and medium-sized enterprises (SMEs), a leading industry group has warned.
• Workers 'want to quit if they can't progress'
  25 May 2007 at 09:02:52
  The bosses of the nation's small and medium-sized enterprises need to do more to make sure their staff benefit from day-to-day training opportunities, industry experts have claimed.