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Companies Act 1985 Query

28 August 2008 1,265 views No Comment

Hello all,

I wanted to find out whether the introduction of the Companies Act 2006 should replace the following statutory paragraph on non-trading accounts filed with companies house. The paragraph reads as follows:-

“The directors consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 249A(1) of the Companies Act 1985. No notice has been deposited under section 249B(2) of the Companies Act 1985. Shareholders holding 10% or more of the nominal value of the company’s issued share capital have not issued a notice requiring an audit. The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 221 of the Companies Act 1985, and for preparing accounts which give a true and fair view of the state of affairs of the company as at 30^th June 2007 in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Act relating to the accounts so far as applicable to the company.”

Is this still relevant or do we still carry on using references to the Companies Act 1985?

Many thanks,

What is the link to IFRS, Companies Act is law not Financial Reporting only

But here is something from Wikipedia, the 2006 act supersedes the companies act 1985, so YES, and 249 is not the correct reference anymore!!!!!

The Companies Act 2006 (c.46) is a statute of the United Kingdom regulating companies within that jurisdiction. It received Royal Assent on 8 November 2006.

The Act also has the distinction of being the longest in British Parliamentary history: with 1,300 sections and covering nearly 700 pages, and containing no fewer than 15 schedules. The Act supersedes the Companies Act 1985. Although the Act amends or restates almost every facet of English and Scottish law in relation to companies, the key provisions are:

the Act codifies certain existing common law principles, such as those relating to director’s duties.

it implements the European Union’s Takeover and Transparency Obligations Directives

it introduces various new provisions for private and public companies.

it otherwise amends or restates almost all of the Companies Act 1985 to varying degrees.^[1]

The reception of the legal profession in the United Kingdom to the Act has been slightly lukewarm.[1] Concerns have been expressed that too much detail have been inserted to seek to cover every eventuality.^[2] Whereas a complete overhaul of company law was promised, the Act seems to very much leave the existing structure in place, and only simplify certain aspects at the margins. In other areas, it appears to have complicated and obfuscated previously settled law.

Guys, just graduated. This is my thesis.

Goeloe, Giovanni Paolo, “Market for Agency Costs: Loosing the Competition by Protecting the Ignorant – Good Rules by Good Governance” (January 2008). Available at SSRN: http://ssrn.com/abstract=1119862