New Companies Act comes into force today

1 October 2009

Today the new Companies Act comes into force after a delay of a year. The changes are designed to simplify the way companies can be set up and operate. It is expected the change in law will affect around 2.5 million public, private and quoted companies. One aspect of the changes that will affect buyers is that the law will allow businesses to make greater use of electronic communications. Information sent electronically or via a website will be deemed valid is both the company and recipient has agreed to it. This is expected to reduce the administrative burden on firms and create cost-savings.

Today is also a big day for the law as Justices will be sworn in for the brand new Supreme Court, which is replacing the Law Lords as the UK’s final court of appeal. The creation of the court finally separates the judiciary and the legislature.

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