On 6th April 2008 the latest phase of the 2006 Act came into force via the Companies Act 2006 (Commencement No 5, Transitional Provisions and Savings) Order 2007.

The main effects of these new provisions are:-

Company Secretaries are no longer required for private limited companies, however if your company's articles of association state that the company must have a company secretary then you must either have one or amend the articles by a shareholder resolution.

Annual General Meetings are no longer required for private limited companies

Since private limited companies are no longer required to have AGM's it follows that they also do not need to lay their accounts before the company in general meeting.

Auditors are now permitted to enter into liability limitation agreements with clients thereby limiting the amount that can be claimed against the auditors for negligence, default or breach of duty or trust in relation to the company's account occurs. The limitation agreement can only be entered into one year at a time and must be disclosed in the accounts concerned.

For further details contact David Hogg or Malcolm Woolfe on 01325 466461 or by email: david.hogg@close-thornton.co.uk, malcolm.woolfe@close-thornton.co.uk

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