Further to our previous overview and summary blogs, The Small Business, Enterprise and Employment Act (the Act) received Royal Assent and was passed into law in the UK on 26 March, 2015. This blog contains an update on certain corporate related aspects of the Act.
Pearse Trust Blog
Changes To The Companies Act
The Companies Amendment Bill, which creates the Companies Amendment Act 2014 (“the Act”) was passed into law by Royal assent on 2 July 2014.
The legislation will introduce important changes affecting the registration of New Zealand Limited Liability Companies. It aims to prevent the misuse of New Zealand companies, particularly “shell” companies, by criminal organisations and also to enhance the powers of the Registrar of Companies.
The provisions relating to the appointment of a director to a new company are contained in section 150-155 of the Companies Act 1993. The appointment and removal of directors is a matter of internal management for a company, however any changes to the directors of a company must be notified to the Registrar of Companies in New Zealand.
A report on directors' remuneration draft by GC100 & Investor Group has outlined a number of guidelines in respect of the implementation of new reporting requirements surrounding directors' remuneration.
Following our blog earlier this year on the call for female board representation to be increased, new figures published show that FTSE100 Companies have now increased female representation on their boards.
In the UK, a director may be removed from their position by the company in certain circumstances.
In recent times, there has been an increase in the number of directors who have found themselves in the High Court facing applications to restrict or disqualify them for various breaches of the Companies Acts.
A director is an officer of a company, appointed by the shareholders or by the other directors where the Articles of Association of the company allow, to manage the company on behalf of the shareholders.
In the everyday course of business, boards are required to reach collective agreements. Considering the different personalities, opinions, behaviours and the executive and non executive functions of the individuals on a boa rd, reaching collective agreements can sometimes be challenging. However, it is healthy for individuals on a board to disagree, challenge each other and offer alternative solutions to problems. Employing appropriate etiquette can be fundamental in ensuring that a board of diverse minds speak with one voice.
Further to our recent blog post outlining the key facts of members’ voluntary liquidations (MVL), the following is intended as a summary of the key facts of the creditors’ voluntary liquidation (CVL) procedure available to insolvent private limited companies in the UK.
Creditors’ Voluntary Liquidations Explained
A CVL is a procedure typically instigated by the directors of an insolvent company where it has been established that the company’s liabilities exceed its assets, or where it cannot pay its debts as they fall due, and therefore cannot carry on its business. The procedure is governed by the Insolvency Act 1986 and the Insolvency Rules 1986 (SI 1986/1925).