On 13 December 2007, the Minister for Competitiveness at the DBERR, Stephen Timms MP, made a further Written Statement to Parliament regarding the commencement of the Companies Act 2006 (CA 2006). This followed his earlier Written Statement on 7 November 2007.

In the December Statement, the Minister stated that, following discussions and meetings with key stakeholders, the Government has decided that most of the provisions listed in the November Statement as subject to consultation, should be commenced with effect from 1 October 2008.

However, one set of provisions subject to consultation will instead be commenced from 6 April 2008, namely sections 811(4), 812 and 814 (inspection of register of interests in a company’s shares). In addition, sections 121 and 128 (register of members: removal of entries relating to former members) will also be commenced from 6 April 2008; these provisions are in Part 8 (a company’s members: CA 2006, ss 112 to 144), the remainder of which is scheduled for commencement on 1 October 2009.

The Minister also announced that, in view of the strength of business representations and of further advice from the Registrar of Companies, the Government has decided in addition to commence, with effect from 1 October 2008, some provisions not listed in the November statement as subject to consultation. These provisions (sections 544, 641(1)(a) and (2)–(6), 642, 643, 652 and 654) relate mainly to the new procedure for private companies to make capital reductions supported by a solvency statement instead of by a court order; they are in Part 17 (a company’s share capital: CA 2006, ss 540 to 657), the remainder of which is again scheduled for commencement on 1 October 2009.

The December Statement comments that stakeholders highlighted the major benefit to business of implementing this new procedure in 2008. The Government had originally not proposed this, because it would require some changes to Companies House systems and processes. However, the Government have looked at this again in the light of the points made by business, and the Registrar of Companies believes that the necessary changes can be made by October 2008.

Commencement Order No 5. Subsequently, as promised by the December Statement, on 17 December 2007 a commencement order (the Companies Act 2006 (Commencement No 5, Transitional Provisions and Savings) Order 2007 (SI 2007 No 3495)) as made in respect of all provisions to be commenced in 2008, other than those relating to capital reduction supported by a solvency statement and the removal of special provisions about accounts and audit for charitable companies. The capital reduction provisions (including section 654 on distributions of reserves arising from a capital reduction) will be commenced through a separate commencement order to be laid in draft in 2008. There will also be a separate commencement order on the audit of small charitable companies.

The remainder of this article sets out the provisions commencing in April 2008 and October 2008.