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This information is updated twice every month. Next update 1st Sep 2007

MINIMUM HOLIDAY ENTITLEMENT TO RISE

27th April 2007
A few months ago we reported on the proposal by the Department for Trade and Industry (DTI) to increase the minimum statutory holiday entitlement from the current 20 days (including bank holidays) to 28 days (bank holidays inclusive). The DTI have been consulting with interested parties and should shortly publish the findings of their consultation. The proposal is to increase the statutory annual leave entitlement in two stages:

• rising from 20 to 24 days on 1 October 2007, and
• from 24 to 28 days on 1 October 2008. If, as expected, the proposal becomes law employers will have to increase holiday entitlements from 1 October 2007 for the four days increase from 20 days to 24 days. This may not coincide with the employer’s holiday year and it will have to be awarded proportionally from 1 October.

To give an example an employee currently entitled to the statutory minimum entitlement of 20 days (including bank holidays) with a holiday year to December 2007 would be entitled to one additional day for the three months covered by the increased minimum entitlement from 1 October 2007 to 31 December 2007. (four day annual increase from 1 October 2007 pro rated for three months).

VAT FUEL SCALE CHARGES

28th March 2007
In previous enews we have advised you of HMRC’s intention to change significantly the VAT fuel scale charges payable by businesses on the provision of fuel for private motoring for their company car drivers. The system of calculating the output VAT charge on a simple cylinder banded table is withdrawn for the businesses first VAT return commencing after 1 May 2007. The new 21 band table will obviously take some getting used to and relies on knowing the benefit in kind percentage which is linked to the CO2 emissions of the car and the type of engine. Under the benefit in kind system there are discounts available for environmentally friendly cars. The output VAT charge for a quarter is found by looking up the relevant percentage in the table. Budget notes pages 131 to 133

INCREASED MATERNITY PAY

28th February 2007
HMRC have updated their guidance on Statutory Maternity Pay (SMP) due to women whose babies are due on or after 1 April 2007. The important date is when the baby is due not when the baby is born. The changes are significant and include:

• an increase in the maximum number of weeks SMP payable from 26 to 39. There is no change to the number of weeks paid at the earnings related rate being the first six weeks.
• introducing keeping in touch days (KIT). Women can do some work during their SMP payment period and can be paid for the work done without losing entitlement to SMP.
• increasing the notice period for women wishing to change their return to work date from 28 days to 8 weeks.
• increasing the leave entitlement for all pregnant women to 52 weeks regardless of the length of service. Please get in touch if we can give you further advice on these or other payroll issues. Employers Bulletin 25

IMPLEMENTATION OF THE CHARITIES ACT 2006

28th February 2007
The Government has issued the first commencement order which brings into force a number of the Act's provisions with an effective date of 27 February 2007. Details of exactly what becomes effective were summarised by the Office of the Third Sector in an implementation plan which can be reached using the link below. Please do get in touch if you would like further guidance on the changes. Cabinet Office charity reform plan and Statutory instrument

FINES FOR NON PAYMENT OF THE NATIONAL MINIMUM WAGE

1st February 2007
Trade and Industry Secretary Alistair Darling has announced that employers who refuse to pay the minimum wage could face a £200 fine for every worker they underpay. Employers already have to pay back arrears they owe to the worker and now those who refuse to pay up will be penalised. Alistair Darling said, ‘Workers have the right to a decent minimum wage and we are determined they get it. To those employers avoiding the minimum wage the message is don't pay it and you'll pay the fine. In the last year alone the government's enforcement teams across the UK helped over 25,000 workers get more than £3m back in unpaid wages.’ Where employees complain they are not getting the minimum wage, HMRC investigate the employer. If the complaint is upheld and the employer will not pay then a warning is given. The employer must repay the arrears within seven days, if they do not they risk a fine. Press Release

MINIMUM HOLIDAY ENTITLEMENT SET TO RISE

1st February 2007
Jim Fitzpatrick, Employment Minister, has announced the government's proposal to increase workers' holiday entitlement from 20 days per year to 28. Research has shown that up to six million workers would benefit from an extra eight days holiday each year under the plans. Currently some employers include the eight bank holidays as part of workers' 20 day annual leave entitlement. This minimum entitlement is pro-rated for part time workers. The DTI is planning a second public consultation on the implementation of the changes. The proposal is to increase the statutory annual leave entitlement in two stages, rising from 20 to 24 days on 1 October 2007, and from 24 to 28 days on 1 October 2008. The DTI has already consulted widely on the increase and has sought the views of business and trade bodies. The cost to business is expected to be around 0.4% of the wages bill. Press Release

PENSIONS BILL

1st February 2007
More people than ever would be entitled to a full basic state pension as a result of measures included in the new Pensions Bill, which had its second reading in the middle of January. Secretary of State for Work and Pensions, John Hutton, said ‘This Bill would create a more generous, fairer state system. It would be of particular benefit to women and carers, who often lose out in the current system.’ According to the Department for Work and Pensions, the reforms included in the Bill should mean that around three quarters of women would be entitled to a full basic state pension in 2010, compared to around 50% if the system was not reformed. By 2020 around 90% of women would have a full entitlement. Press Release

CHANGES REQUIRED TO WEBSITES AND ELECTRONIC DOCUMENTS

1st February 2007
The government has recently issued new legislation extending the requirements for companies and Limited Liability Partnerships (LLPs) to provide certain particulars about themselves on their websites and in electronic versions of all documents. The new legislation became effective from 1 January 2007 and there are penalties for those who do not comply. The changes mean that companies and LLPs must disclose their name, place of registration, registered number and the address of their registered office on their websites. This information must already be included on business letters and order forms. The new legislation extends the requirements to include this information to such documents in electronic format. As so many of us now conduct business correspondence by email, this has implications for the amount of information that must be included. Please do get in touch if you want any more clarification on this. Statutory Instrument

HMRC EMAIL SCAM

2nd January 2007
HMRC have issued a warning to taxpayers about an email scam which is a ‘phishing exercise’ that uses bogus emails and websites to trick people into supplying confidential or personal information. The email asks taxpayers to complete a form with their bank details, on the understanding that they will receive a large repayment of tax direct to their bank account. The message and the promised tax rebate from ‘HMRC Premier Services’ are not legitimate. HMRC also provide a link to advice on online protection HMRC warning and get safe online website

CONSTRUCTION INDUSTRY SCHEME

2nd January 2007
In last month’s enews we reported that HMRC had launched their press campaign on the introduction of the new Construction Industry Scheme (CIS) which will be introduced on 6 April 2007. In the Pre-Budget Report the government made two announcements regarding CIS tax rates. Under the current scheme subcontractors may be entitled to receive payments without deduction of tax if they have satisfied certain criteria. Otherwise there is a standard deduction rate (currently 18%) for registered subcontractors. According to HMRC an increasing proportion of subcontractors in the current scheme do not have their full tax and NIC met by their deductions. To reduce the additional payments due after the end of the year, the new scheme will have a standard deduction rate of 20%. A higher deduction rate will be introduced in the new scheme which allows unregistered subcontractors to start work. The government has now confirmed this rate will be 30%. One of the purposes of the higher rate is to encourage subcontractors to register. In preparation for the new scheme HMRC have recently sent a letter and a paper list or CD-ROM, to all registered contractors. The lists contain details of subcontractors paid since 6 April 2005 and therefore not requiring verification under new CIS. Pre-Budget Report and CIS mailshot

MANAGED SERVICE COMPANIES ATTACKED

2nd January 2007
In 2000 the government introduced rules to tackle the provision of services through Personal Service Companies (PSCs). These rules have been referred to by the name of the press release of that time, IR35. PSCs were designed to ‘disguise employment’ by placing an intermediary, usually a company, between the payer and worker. This minimised the amount of tax and NIC due by paying that worker predominantly with dividends. Managed Service Companies (MSCs) attempt to avoid the IR35 rules. The types of MSCs vary but are often referred to as ‘composite companies’ or ‘managed PSCs’. HMRC have encountered increasing difficulty in applying the IR35 rules to MSCs because of the large number of workers involved and the labour-intensive nature of the work. Even when the IR35 rules have been successfully applied, an MSC can often escape payment of outstanding tax and NIC as they have no assets and can be wound up. The government announced in the Pre-Budget Report that they will remove MSCs from the IR35 rules and introduce new rules from April 2007. The intentions of the new rules are to: • ensure that those working in MSCs pay tax and NIC at the same level as other employees • alter the travel and subsistence rules for workers of MSCs to ensure they are consistent with those for other employees • allow the recovery of outstanding tax and NIC from ‘appropriate third parties’. Pre-Budget Report

VAT ON MOBILES AND COMPUTER CHIPS

4th December 2006
A couple of months ago we reported that HMRC published guidance for businesses which buy and sell mobile phones, computer chips and certain other goods. The intention is to change the way in which VAT is dealt with on these items by making the purchaser responsible for paying the VAT using a system known as ‘reverse charge’. This means that the purchaser will be responsible for paying the VAT on the purchase of the goods and then will generally be able to claim a deduction for the input VAT suffered on the goods purchased. This change in treatment is due to carousel fraud or missing trader fraud which is estimated to cost one to two billion pounds a year in lost VAT. HMRC had proposed to implement the changes with effect from 1 December 2006 but have now put the change on hold because EU discussions about the necessary change in law are still continuing. HMRC still intend to introduce reverse charge accounting for these goods as soon as agreement has been reached. They propose to give businesses about eight weeks notice of its introduction, and will provide further information as soon as possible. We will continue to keep you informed. HMRC Business Brief

NEW COMPANIES ACT NOW LAW

4th December 2006
The Companies Act 2006 has finally received Royal Assent. The Act aims to simplify and improve company law and will take two years to implement. Running to some 1,300 sections the Act sets out the way companies are formed, managed and the legal requirements including new responsibilities for directors. Trade and Industry Secretary Alistair Darling said that there would be ‘widespread and effective communication’ to ensure that businesses understand the new Act. We will of course be in touch with those businesses that are affected by the changes in the law but do get in touch if you have any immediate queries or concerns. Press Release

PENSIONS WARNING

4th December 2006
Tony Hobman, chief executive of the Pensions Regulator, has warned companies not to sell or abandon their final salary pension funds without proper provision for meeting their deficits, which are estimated to be more than £100bn. He advised that corporate deals to transfer company pension schemes to new specialist vehicles could result in employers abandoning schemes without fully meeting their obligations to members. The Regulator advised that it has already been approached by pension scheme advisers with proposals to transfer company retirement plans in such a way that the existing employer would avoid having to meet its full obligations. David Norgrove, chairman of the Pensions Regulator, told The Daily Telegraph that Tony Hobman’s speech is "a warning shot across the bows to employers and pension scheme trustees to be exceedingly careful before transferring pension funds to another company”. Telegraph Article

GUIDANCE ISSUED ON MATERNITY PAY CHANGES

3rd October 2006
As part of the Work and Families Act there will be some significant changes to maternity pay entitlement for women whose babies are due from 1 April 2007 onwards. The due date should be taken from the maternity certificate MATB1 which the woman obtains from the midwife when she is about 20 weeks pregnant. Women who qualify for statutory maternity pay (SMP) will be entitled to 39 weeks paid SMP. The first six weeks of their entitlement will be paid at 90% of their average pay. The remaining 33 weeks of the payments will be due at the lower rate of SMP which is currently £108.85. HMRC have published some examples which show how the new entitlement will be calculated. HMRC guidance on maternity pay changes

RECRUITMENT AND AGE DISCRIMINATION

3rd October 2006
The Employment Equality (Age) Regulations 2006 take effect from 1 October 2006. ACAS has published a free guide for business owners to help them deal with the regulations. The guide looks at key areas such as recruitment, appraisal, promotion, redundancy and retirement ACAS Age and the workplace guide

NATIONAL MINIMUM WAGE CHANGES

3rd October 2006
Many legislative changes are confined to April and October each year. 1 October 2006 sees the introduction of a number of changes not least of which are the increases to the national minimum wage (NMW) rates. The NMW rate has been increased with the rate for workers aged 22 and over rising by 30 pence to £5.35 per hour. Rates for workers under 22 increase by 20 pence to £4.45 and the rate for 16 – 17 year olds by 30 pence to £3.30 DTI NMW rates

WOMEN URGED TO SAVE FOR RETIREMENT

6th September 2006
A couple of months ago we reported on the Pensions White Paper which looks at many proposals for pension reform. We have included the link to the White Paper below. One of the issues discussed in the White Paper is the continuing problem of women reaching retirement age with little entitlement to the state retirement pension. In addition to this, working women save significantly less than men and approximately two thirds of women have no private pension at all. James Purnell, Minister for Pensions Reform, said that ‘Women must think about the way they save in order to help address the pensions’ gender gap. Today’s state pensions are unequal – with 30% of women retiring on a full state pension, compared to 85% of men’. The Government has pledged to tackle the inequality faced by many women by reforming state pensions Press release and Pensions White Paper

BUSINESSES FRUSTRATED BY YOUTH SKILLS

6th September 2006
As A-level and GCSE results are released, David Frost, Director General of the British Chambers of Commerce (BCC), described the frustration businesses feel about the lack of youth skills in the UK: ‘The government still has not grasped the nettle on youth skills. We will no doubt hear that grades have yet again improved and that more young people than ever are taking exams. But the overwhelming majority of businesses are exasperated with the quality of recruits they interview from secondary schools and colleges.’ The BCC have reported that nearly 80% of the firms that they talked to said that young people who they employ after leaving school with A-levels are ill-equipped for the world of work. ‘Businesses are fed up with having to teach literacy and numeracy skills to new recruits and deplore the decline in young people taking science subjects and languages. They want meaningful clarification on what grades really mean and a supply of young people with a real understanding of what will be expected of them in the workplace’ BCC press release

UK BUSINESSES GET TOUGH ON DEBT

6th September 2006
Research from the Credit Services Association (CSA) suggests that British businesses are resorting to the courts at an early stage in order to recover debts. This is despite the fact that taking such action is likely to destroy business relationships. The CSA’s representative Godfrey Lancashire commented that, ‘Businesses want their cash and see litigation as the fastest way of getting it. Before a debt collection agency would have several weeks to achieve a result, now they are often being instructed to go legal within a matter of days.’ This approach may have implications as Godfrey Lancashire explained ‘the majority of debts are recoverable without having to resort to the courts, without the additional costs and without, therefore, jeopardising future relationships with customers.’ Small Business news article

POSTAL CHANGES

6th September 2006
The postal charging changes came into effect from 21 August 2006. You should have received details of the new sizing guide direct from the post office. Gone are the days of putting a single sheet of A4 into an A4 size envelope, as it will generally be cheaper to fold them to a maximum A5 size before posting, taking advantage of the small letter size rate. The rules are relatively straightforward and you can see exactly how they work by clicking on the links below. Royal Mail new pricing and sizing and Royal Mail questions and answers

BUSINESS RATES

21st April 2006
The Federation of Small Businesses advises that lots of smaller businesses are paying too much in business rates. To see if this applies to your business follow the link below.

Internet link:
FSB advice Scotland
FSB advice England

BAD DEBT REACHES NEW HEIGHTS

3rd April 2006
A study carried out by the Credit Management Research Centre (CMRC) shows that late payment is causing small firms in the UK to write off an average of £14,000 in bad debt every year. The study, which was carried out by Leeds University Business School, found that 24% of small and medium-sized firms think domestic bad debt is a serious problem for them, with a further 15% concerned about bad debt caused by export customers.

Internet link
The study's results are summarised at:
CMRC survey

FAMILY FRIENDLY POLICIES - HAVE YOUR SAY IN THE CONSULTATION

The DTI has launched a consultation into parental leave for employees, giving particular consideration to providing greater options for parents to choose who cares for their child during the first of their life. One suggestion is that the father could take up to six months paternity leave where the mother chooses to return to work after six months. Businesses’ views are being sought on a number of aspects of the proposals.

Internet link:
DTI work and families consultation

NATIONAL PENSIONS DAY – 18 MARCH

15th March 2006
On 18 March 2006 the future of pensions will be debated nationwide in the UK's first National Pensions Day.

Secretary of State for Work and Pensions, John Hutton, made the announcement in a speech to The Work Foundation.

A series of consultation events will take place on the day in Birmingham, Newcastle, Glasgow, Swansea, Belfast and London, attended by Ministers, industry specialists and a representative sample of the public.

The recommendations in The Pensions Commission's report published last November will provide the basis for the debate, which will also look at:

• the role of the State
• the challenge for employers
• the options for improving the position of women's pensions
• and the trade-offs and balances that will have to be struck to achieve long-term reform.
  

Internet link:
Read the press release

CHIP AND PIN
We are sure you will not have missed the introduction of the chip and PIN payment system with the flurry of in store advertising campaigns. Fighting for Private Business (FPB), a group which campaigns for small businesses, says banks are to blame for the difficulties surrounding the introduction of chip and PIN by pushing the system through before retailers and consumers are ready.

From 14 February, people with chip and PIN cards are expected to verify a purchase by keying in their personal ID number. If your business does not have chip and PIN you may now be liable for credit card fraud carried out on your premises.

Internet links:
fighting for private business website
the times online
Chip and PIN website

HEALTH AND SAFETY AT WORK

The Health and Safety Executive have put together an interactive package to enable businesses to check whether or not they are complying with the legislation in this area. To check if your business is up to scratch use the link below.

Internet link:
HSE website

SMES HAPPY BEING SMALL

1st March 2006
Research shows that three quarters of small business owners believe their quality of life has improved since they started their own business.

The Health, Wealth and Happiness Report from MORE TH>N Business, shows that over half the owners of ventures employing fewer than five employees started their businesses to be happier and to have more control over their lives, rather than to make their fortunes.

Starting up in business was a lifestyle choice rather than a career move, as an overwhelming 85% prioritise quality of life over money, while 56% never want to employ more than 10 staff.

One of the conclusions of the survey is that this type of small business should be regarded as distinct from traditional entrepreneurs, even going to the trouble of dubbing them ‘alterpreneurs’ and setting up a website dedicated to them.

“Working for yourself can be a great lifestyle choice,” commented Stephen Alambritis of the Federation of Small Businesses. “Despite the hard work and long hours involved, very few people who have made the leap would consider returning to the 9 - 5 world again.”

“The government is missing the target by aiming support at start-ups with big growth plans,” he continued. “There needs to be greater focus on established firms, and moves to tackle the administrative headache of taking on employees to make growing a business more appealing.”

Internet link:
http://www.alterpreneur.co.uk/

NO FUTURE FOR THE CORNER SHOP

21st February 2006
A gloomy future awaits the traditional corner shop, according to predictions from a parliamentary committee. The pressure from the big four supermarket chains will prove so great that, by 2015, wholesalers which specialise in supplying the smaller retailer are likely to have disappeared too. The predictions are contained in a report leaked to The Times, which is due to be published later this month.

Internet link:
You can read more at:
The Times online

UNFAIR DISMISSAL COMPENSATION SET TO RISE

The government has announced the revised compensation limits that will come into effect from 1 February 2006. From that date, the maximum amount of compensation awarded for cases of unfair dismissal will increase from £56,800 to £58,400.

The maximum award of 'a week's pay' as defined when calculating redundancy payments will also rise from £280 to £290. This is the maximum amount of weekly pay that can be included in statutory redundancy payments regardless of actual earnings.

Internet link:
To read the details go to:
Legislation

CIVIL PARTNERSHIPS – A SENSITIVE ISSUE

We reported in a previous newswire the introduction of Civil Partnerships. Acas has since issued guidance on how to comply with the Civil Partnership Act, which gives same-sex couples the same rights as married heterosexual couples in terms of employment rights such as pensions, parental leave and health insurance options. Acas is asking businesses to review their current policies, forms and guidance to ensure that they are up to date. It claims the changes are easy to implement but points out the need for sensitivity and discretion when dealing with such matters.

Internet link:
To read the Acas guidance go to:
Acas guidance

BIRD FLU

1st February 2006
Avian flu continues to make the headlines and appears to be getting closer to the UK, causing worry and uncertainty.

Bird flu, known as H5N1, currently lacks the ability to transfer from human to human, but, like ordinary flu, it is steadily changing and health officials are concerned it will develop that ability. If this happens, the consequences could be catastrophic. More than eight out of ten large UK companies have made emergency plans, according to a survey by The Telegraph.

However, many smaller employers have not yet recognised the financial consequences that bird flu could have on their business were it to become a pandemic. Businesses should consider whether they need to make contingency plans. Some of the potential risks are:

• staff shortage through employees taking time off ill, to care for others or to avoid infection
• costs of stringent health and safety policies and procedures for preventing a spread of the virus
• disruption to public transport, making it difficult or impossible for staff to get to work
• costs of home-working solutions for those unable to attend work
• disruption to the supply chain
• disruption to business travel.
  

Internet links:
To read more go to:
Small business article
Telegraph

ARE YOUR CUSTOMERS CREDITWORTHY?

Small businesses should check potential customers’ creditworthiness before starting to trade with them and then continue to monitor them to avoid payment problems developing, advises the Better Payment Practice Group (BPPG).

An effective way of doing this is to apply for a status report on the customer from a credit agency. These include full customer details and financial results, along with the payment experience of other suppliers, county court judgments registered against them and a recommended credit rating.

The BPPG recommend carrying out credit checks on customers that make up the top 80% of your sales. These businesses should be given a full credit check. Less detailed checks can then be carried out on the others.

The BPPG also offer advice on whether or not you should offer customers trade credit in the first place and give tips on how to improve the credit rating of your own businesses.

Internet link:
To read the BPPG guidance go to:
BPPG guidance

EXPLAINING FATHERS' RIGHTS

4th January 2006
A Citizens' Advice Bureau (CAB) briefing has highlighted a number of cases whereby businesses have not explained to staff their rights under legislation surrounding parental leave.

The CAB cases have revealed that a number of male employees are being refused the two weeks' paternity leave to which they are legally entitled because they have not been informed that they need to give 15 weeks' notice.

The CAB is currently lobbying the Government to reduce this notice period for new fathers. Certainly it does seem a rather long notice period for a maximum of two weeks’ paternity leave.

Internet Link:
To read the CAB’s comment and briefing go to:
CAB - press release

DEFRA PLANS TO SIMPLIFY REGULATIONS AND REDUCE COSTS ON BUSINESS

In line with the Government’s better regulation agenda, the Department for Environment, Food and Rural Affairs (Defra) has announced plans to simplify its regulations and reduce the burden of red tape on businesses. 64 initiatives are underway to simplify Defra regulations and reduce business burdens. The measures are expected to save business more than £86m each year. Further initiatives are also expected over the coming months.

The plan's suggestions for simplifying regulations include:

• reducing red tape for the water industry by working with the Environment Agency, Ofwat, the Drinking Water Inspectorate and water companies to identify and take action on areas with high administrative burdens
• a review of domestic and EU commercial fishing legislation aimed at reducing administrative and policy burdens on industry and
• integration of the permitting regimes for Waste and Pollution and Prevention Control to reduce burdens on industry.
  

Internet Links:
To read the press release announcing the plans go to:
Press Release

To view the simplification plan go to:
Lifting the Burden

BANKING

15th December 2005
The Office of Fair Trading (OFT) is to examine the UK system of cheque clearance and will publish a report in the summer of 2006. A number of issues will be considered including a cost/benefit analysis on cheque clearance times as well as differing practices between banks.

Back in 2002, the Competition Commission found that the big four banks were making business customers pay too much in bank charges and recommended a reduction. Despite this, business banking costs have continued to rise over the last three years. It is an area the OFT intends to look at in due course.

Perhaps this is the reason that a Banking Code Standards Board survey has found that businesses are finding it easier to switch bank accounts than ever before thereby keeping disruption to business to a minimum.

Internet links:
The OFT press release on cheque clearance can be found at:
OFT news

To read about increased business banking costs go to:
Moneyworld news

Businesses finding it easier to switch bank accounts:
Firststop4business news

E-COMMERCE SURVEY

The government’s National Statistics Office has released the findings of its 2004 e-commerce survey. Internet sales rose to £71.1 billion, an impressive 81% increase over 2003.

However behind this impressive headline figure is the rather less impressive news that only a third of businesses had a website in 2004 and only 6.7% of businesses sold over the internet in 2004.

Internet link:
To read a summary of the survey’s findings go to:
Government statistics

DATA BACK-UP FOR SMALL BUSINESSES

Recent research by British Telecom in association with the Institute of Directors has found that less than 20% of UK small businesses back-up their data remotely despite over 80% admitting that they could not function without it.

The most popular means of back-up were, perhaps not surprisingly, tape and CD. However many of these are not stored off-site making them vulnerable to disasters such as fire. Furthermore because the system typically relies on staff to initiate the process, it is not always done regularly. Small businesses are encouraged to store back-up data off-site and consider using a broadband-based service that automatically dials in and stores information on a remote server.

Internet links:
To read more about the research go to:
Small business news
BT news

COMPANY LAW REFORM

5th December 2005
The long awaited Company Law Reform Bill was published at the beginning of November and runs to 552 pages. The Bill contains changes designed to simplify and improve company law especially for small companies.

Small companies will benefit from proposals to:
make the law easier to understand and more flexible
simplify company formations
abolish the need for a company secretary
make AGMs opt in rather than opt out
introduce new model articles.
Other proposed changes which will affect all businesses include clarification of directors’ duties and greater use of electronic communications.

Generally the publication of the Bill has been well received. The Institute of Directors described it as a ‘welcome step forward’.

Internet links:

For a summary of the contents of the Bill go to:
sbs news

The Institute of Directors’ comments can be found at:
IOD comment