Posted by James Millar Craig, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Tough penalties for companies who ignore new legal requirements
Businesses have been urged to be aware of the raft of changes to company law which are set to take effect over the next 12 months.
The Small Business, Enterprise and Employment Act received Royal Assent earlier this year and will introduce a range of new requirements designed to improve transparency in commercial transactions.
Probably the most controversial aspect of the new legislation is the introduction of a public register of individuals who exercise “significant control” over unquoted UK companies.
From early next year, companies must maintain the register and keep it up-to-date.
Additional rules, expected to be introduced next April, will also require firms to disclose the register to Companies House annually.
Failure to abide by these new rules will lead to criminal proceedings, with those convicted being punished with a fine or custodial sentence.
Other key changes that will take effect under the Act include:
- The introduction of annual confirmation statements, replacing the returns.
- The ability for private companies to keep their statutory registers at Companies House.
- New grounds for directors being disqualified, including overseas convictions and mismanagement.