The Companies Act 2006 received Royal Assent on 8 November. The legislation constitutes a complete makeover of UK company law and will affect all UK companies small medium or large. The Act will come into force in stages, with all parts in force by October 2008.  

Two areas of the new law have already come into force:  

1. E-mails and Websites

From 1 January 2007 the information required to be given on corporate notepaper must also be given on electronic communications and on websites. This means all UK companies must now include the following somewhere on their faxes, email footers and websites:

full company name;
place of registration;
registered number;
registered office address.

The maximum fine for non-compliance is £1,000, therefore, all companies should check whether they are complying with the new regulations, and amend their electronic templates where appropriate. 

2. E- Communications rules

New e-communications rules came into force on 20 January 2007 which will enable companies to use email and websites as the default way of communicating with shareholders. This is not entirely new as companies are already allowed to send annual reports and AGM notices by email or website.  The new rules go further by allowing companies to use these methods for most other purposes too, and in allowing shareholders to communicate back by email.  In such cases, both parties have to agree to this and supply each other with email addresses for the purpose.

If companies want to take advantage of the rules allowing documents to be distributed by website, an enabling shareholders' resolution will be needed and shareholders must be asked individually for consent.  Failure to respond within 28 days will mean consent is taken as given. Shareholders must also be notified when documents are uploaded.
Note that these new rules do not extend to shareholder written resolutions. 

Please contact The Legal Director if you require more information.