“Companies Act 2006: A Guide for Private Companies” (First edition)

Citation

Taylor, C. (2009), "“Companies Act 2006: A Guide for Private Companies” (First edition)", International Journal of Law and Management, Vol. 51 No. 2, pp. 124-125. https://doi.org/10.1108/17542430910947149

The passage of the Companies Act 2006 continues to cause confusion and some anxiety to those involved in the management of limited companies. In part, this is due to the sheer scale of the overhaul of company law which it represents, not least with the introduction of statutory directors’ duties, but it is also a result of the protracted process of transition from the Companies Act 1985, which has seen final implementation postponed from October 2008 to October 2009. As a consequence, many directors and managers remain uncertain of precisely how the Act will affect them and such concerns are particularly acute for those involved in small (and not so small) private limited companies. Such companies generally lack the resources and expertise available to their public and listed counterparts and so are forced to wade through the quagmire of legislation largely unassisted. For the smaller company, any guidance on the new regulatory framework is to be welcomed and this is precisely what this text provides.

Concentrating on those provisions which are of particular relevance to private companies, Van Duzer has produced an accessible and worthwhile resource for managers and directors which presents the changes in a form which is both simple and informative. Broken down into key areas, the text not only details the changes introduced by the 2006 Act but also summarises precisely how the new provisions differ from the old, providing the reader with a clearer appreciation of the implications for businesses in terms of the procedures, obligations and liabilities which they face.

In terms of content, the text addresses all of the areas of concern to a small company and its directors. The sections on directors and annual compliance are extremely informative and the chapter on event related compliance should prove particularly useful. Another key attraction of this title is the clear and concise way in which the provisions are set out and their implications assessed. Stripped of theoretical background and exhaustive referencing, this is very much a “hands on” tool for busy professionals and succeeds in presenting often complex changes in a style which will be readily accessible to those who need it most.

The only real limitation of the text is that it was written before the delay in implementation of the Act was announced and so the timetable of commencement dates, which would otherwise have been such a useful feature, is somewhat undermined be subsequent events. This is, however, something of an unfair criticism, as this is far from the only title to suffer from the unsatisfactory manner in which the Act has been brought into force. Also, this is more than compensated for by the clarity of the commentary, which should prove a real asset to those involved in the management of private companies.

In summary, this is an invaluable guide for the smaller company, well written and competitively priced. As such, it represents excellent value as a source of both clarification and reassurance.