Companies Act 2006 - Private Companies

Private Companies

One of the more touted aspects of the new legislation was the simplification of the corporate regime for small privately held companies. A number of the changes brought about by the Act apply only to private companies. Significant changes include:

  • Company secretaries - a private company no longer needs to appoint a company secretary, but may do so if it wishes.
  • Shareholders' written resolutions - the requirement for unanimity in shareholders' written resolutions was abolished, and the required majority is similar to that for shareholder meetings - a simple majority of the eligible shares for ordinary resolutions, or 75% for special resolutions.
  • Abolition of AGMs - private companies are no longer required to hold Annual General Meetings, although they can elect to provide for them in their articles if they wish.
  • Short notice of meetings - private companies can convene meetings at short notice where consent is given by holders of 90% by nominal value of shares carrying the right to vote.
  • Allotment of shares - where private companies have only one class of shares, the directors will have unlimited authority to allot shares unless the articles otherwise provide.
  • Financial assistance - the Act abolishes the prohibition on private companies providing financial assistance for the purchase of their own shares, and the related "whitewash" exemption procedure.
  • Reduction of share capital - private companies will be able to reduce their share capital without the need to obtain a court order.
  • Filing of accounts - the period in which accounts must be filed has been reduced from 10 months to 9 months from the financial year end.

Read more about this topic:  Companies Act 2006

Famous quotes containing the words private and/or companies:

    Alone in the public clearing
    This private thing was owned by all the town,
    Though never claimed by us within my hearing.
    Allen Tate (1899–1979)

    In the U.S. for instance, the value of a homemaker’s productive work has been imputed mostly when she was maimed or killed and insurance companies and/or the courts had to calculate the amount to pay her family in damages. Even at that, the rates were mostly pink collar and the big number was attributed to the husband’s pain and suffering.
    Gloria Steinem (20th century)