Press Release: COMPANIES MUST ACT BEFORE OCTOBER 1

The clock is ticking for companies that have not prepared for a major legal shake-up which comes into effect on October 1.

The new Companies Act will affect every company operating in the UK and will change the way information is filed at Companies House.

Under the new Act, some of the key changes include a shortened time-frame for filing accounts, higher penalties for missed deadlines and a new online system to submit all information.

Haydn Jones, a company law specialist at Coventry solicitors Band Hatton, said the changes should make the process cheaper and easier in future – but urged companies to learn about what they need to do as soon as possible.

“There are various changes but, first of all, companies need to make sure they’ve completed any business with Companies House under the 1985 Act before the end of September,” he explained.  

“After that, there is a new system which everyone must use. Companies should become registered and ready to file their information electronically, along with understanding the new responsibilities involved.

“Once that’s sorted, they should be reviewing what might be useful to adopt under the new act.

“New model forms of constitution allow simplified company articles to include the company’s objects, liabilities and assets – all of which were previously in the company memorandum. 

“That will be compulsory for all businesses formed after October 1 – but existing companies can also adopt the simplified constitution, but will have to hold a shareholders meeting to do so.

“It’s part of a complete overhaul of the company formation and administration process, which is set to be easier and cheaper in future, including increased use of electronic reporting and filing. 

After the October 1 deadline, any information submitted using old forms will be rejected.

But Mr Jones believes the new online system should reduce the headache for directors:

“With electronic WebFiling it should be an easy process. There are menu screens to guide you through and it is self-explanatory,” he said.

“On the downside, all companies will have one month less to file accounts, with the filing period reduced to nine months for a private company. Penalties for late filing have also doubled. 

“But overall, these changes should be beneficial.”

To find out more, contact Mr Jones on 02476 632 121.

Ends

Notes to editor:

Company Checklist:
* Get all activity up to 30th September logged on the old forms on time
* Start using the new forms for all activity from 1st October
* Get registered for online filing with WebFiling
* Notify service addresses for directors so home addresses can remain confidential
* Ensure you diarise to submit annual returns on the new 9 month deadline
* Ensure amendments to articles are notified within 15 days to avoid penalties and criminal action
* Review with your adviser whether it would be useful to adopt the new simpler style company articles

Media enquiries:
Dan Donovan
Advent Communications
2 Edison Building
Electric Wharf
Sandy Lane
Coventry CV1 4JA
Tel: 024 7663 3636
http://www.advent-communications.co.uk