Companies Act 2006 - changes in 2008

A number of further changes have come into force in 2008.

From 6 April, a single director has been able to bind the company by executing any document on behalf of it in the presence of a witness. The person dealing with the company in good faith can rely on a document signed this way. Documents can also still be executed by two directors or a director and the company secretary. In addition, private companies are no longer required to have a company secretary, subject to any provision to the contrary in the company's articles of association.

From 1 October, further changes have come into force:

Directors - a company must have at least one director who is a natural person and every company director must be at least 16 years old.
Director's duties - directors will be under a duty to avoid conflicts of interest, not to accept benefits from third parties and to declare any interest in proposed and existing transactions or arrangements with the company.
Objecting to company names - a new system to objecting to the name of another company will become operative, whilst any person claiming that the name is the same as or similar to a name already used can object.
Financial assistance for the purchase of a company's shares - this will no longer be illegal, although financial assistance given by a company can still be illegal under other rules of company law.

If you have not already done so, you should consider undertaking a full review of your articles of association. Please contact Frank Scott-Ashe (frank.scott-ashe@blbsolicitors.co.uk) for more information.