Funding news - 29/03/2005
£100 Million A-Year Boost To Small Firms
Trade and Industry Secretary Patricia Hewitt has published a draft company law reform bill aimed at saving small businesses £100 million.
Company law will be substantially changed to make it easier to understand and be made more flexible especially for small businesses. The plans would help keep the regulatory burden to a minimum, and promote shareholder engagement and a long-term investment culture.
The draft reform also proposes a range of benefits and measures for all businesses. It is estimated that business benefits from these proposals would total around £250m a year.
This includes an annual £100m benefit for small companies from:
- Restructuring those parts of company law most relevant to small businesses making it easier for them to understand what they need to do.
- Simpler rules for forming a company.
- Abolition of the need for a company secretary.
- Making AGM opt in rather than opt out.
- New model articles.
The consultation is open until 10 June and the aim is to introduce a Bill as soon as Parliamentary time allows.
A short summary of the main changes for small businesses is also available on the DTI website http://www.dti.gov.uk/cld/review.htm
Source: DTI 17/03/05
