The Companies Act 2006: takeovers and electronic communications

United Kingdom

On 8 November 2006 the Companies Bill finally became the Companies Act 2006. Eventually the new Act will repeal and replace nearly all of the Companies Act 1985 and:

  • simplify the administrative burden on smaller private companies, which make up the vast majority of the corporate population;
  • facilitate shareholder engagement, particularly in quoted companies; and
  • update and clarify the law in various areas, particularly in relation to directors’ duties.

Only a handful of the Act’s 1,200-odd sections and 16 Schedules came into force at the time of Royal Assent. The Government has said that the remaining parts will all be in force by 1 October 2008

Please click here to view an article looking at two of the most important parts of the Act which will come into force by 20 January 2007: the provisions relating to takeovers and electronic communications between companies and their shareholders.

For an overview of the whole Act, see our article “The Companies Act 2006: deferred reform”, which can be found by clicking here.