Corporate Compliance and Regulation

Corporate compliance and regulation has come a long way since the Joint Stock Companies Act of 1844 which was the first UK legislation to govern the operation of businesses and increase public confidence in the honesty of directors and their management.

Parliament has passed many further Acts in the intervening period governing every aspect of business and a commercial lawyer has to be aware of the implications of how each piece of legislation will affect his clients.

Apart from corporate compliance in relation to meeting statutory obligations in how a company is established and operated, reporting and particularly directors' duties towards shareholders are covered by legislation. Companies are regarded as having a legal persona and failure to meet the various requirements will usually result in fines and other punishments for directors and officers.

The most recent updating of legislation governance is The Companies Act 2006 which supersedes previous regulations. It is the longest Act of Parliament in British history, containing 1,300 schedules in 15 sections.

It seeks to cover every aspect of law relating to private and public companies operating in the UK, incorporating previous legislation and common law strictures, adding some European Union directives and amending rules with the objective of streamlining company business, particularly for small firms.

Many of the administration measures are intended to help the running of private companies with a reduction in formalities relating to facets including company secretaries, shareholder resolutions, AGMs, meetings, allotment and reduction of shares and filing of accounts.

Modernisation of company formation procedures

Modernisation of company formation procedures includes use of the internet and it has become possible for a single person to form a public company. The issue of documentation and shares have become less restrictive under the latest legislation and it has been made easier and quicker for shareholder meetings to be held.

The new office of Company Names Adjudicator has been established and corporate capacity has become unlimited, reducing the need for businesses to define their objectives.

Generally companies which are listed on the Alternative Investment Market (AIM) do not have to meet the same reporting and governance requirements of those which are listed with the London Stock Exchange (LSE).

Among provisions with which LSE-listed public companies have to comply are those which are intended to increase shareholder involvement by presenting a Business Review within the annual accounts and enfranchisement of indirect investors.

Retaining the services of an experienced commercial lawyer to advise and supervise all aspects of compliance with The Companies Act 2006 and associated legislation is a vital part of operating an efficient and legitimate business of any size in the UK.

Extensive corporate legal skills at JMW Solicitors

JMW specialises in providing advice on all aspects of company law and corporate finance for businesses ranging from owner-managed to a large plc. The Corporate team at JMW is further able to draw upon the combined skills of the firm's partners in other fields such as Employment Law, Intellectual Property Law and Commercial Property Law in order to provide any of the parties to a limited liability partnership with a broad range of comprehensive, commercially practical, added-value legal advice.

For further information please contact us on 0345 872 6666 or by completing our enquiry form. we will respond promptly.

Read more
Wildcard SSL Certificates