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Companies Act 2006 - Essay Example
Pages 6 (1506 words)
Part 12 of the Companies Act 2006 states that "a private company is not required to have a secretary" and "a public company must have a secretary" (Department for Business, Enterprise and Regulatory Reform of the United Kingdom). It is in the light of these provisions of the Companies Act of 2006 that the role of the company secretary is evaluated in both private and public companies.
The new law hopes to reduce regulation that will allow companies to run their companies better and even cheaper. The changes brought about by the new law will result to savings of 250 million per year for businesses, inclusive of 100 million for the small businesses (http://www.bytestart.co.uk/ content/ legal/35_2/companies-act-guide.shtml)
The new law brought anxiety to company secretaries in private firms because of possible abolition of the position. As part of the deregulation measures of the United Kingdom government, the requirement to have a company secretary is removed such that private companies can abolish the company secretary position starting April 6, 2008. A private company, however, has the option to retain its company secretary. The registrar of companies must be informed of the appointment of a company secretary to a private company and recorded in the company's register of secretaries. The private company secretary will perform the same obligations as a public company secretary as stipulated in the Companies Act 2006. ...