Consultations Under Archive Where a Response from the Government has been Published

Director's Home Addresses

In May 2001 the Criminal Justice and Police Act 2001 received Royal Assent. Section 45 of the Act amends the Companies Act 1985 and provides that the Secretary of State may grant a Confidentiality Order where she is satisfied that the availability for inspection by members of the public of a director's home address creates, or is likely to create, a serious risk that the individual, or person who lives with him, will be subjected to violence or intimidation. The amendments to the Companies Act 1985 also include a number of provisions which may be implemented through regulations and the details of the new system are set out in regulations which came into force on 2 April 2002. A press notice setting out details of the regulations and the contact point for further guidance and for application forms may be viewed here (14Kb). This Press Release is also available in Word Format (29Kb).

A consultative document issued in October 2001 seeking comments on the then draft regulations may be viewed here (158Kb). A summary of responses may be viewed here Summary of Responses (56Kb); this summary is also available in PDF format(30Kb).

Removing the 20 Partner Limit

On 4 April 2001 the Government published a consultation document on the removal of the limit in the Companies Act 1985 on the maximum number of partners in a partnership. A copy of the consultation document is available by clicking below:

Removing the 20 Partner Limit (186Kb)

Following the consultation a document summarising the responses to the consultation was published on 8 November 2001. Melanie Johnson, Minister for Competition and Consumers, confirmed the Government's intention to remove the limit by means of Regulatory Reform Order. To view the document click below:

Removing the 20 Partner Limit - Summary of Responses (34Kb)

To view the Press Release accompanying the publication of the summary of responses please click here.

To view the final draft of the Regulatory Reform (Removal of 20 Member Limit in Partnerships etc.) Order 2002, as well as other relevant documents, please click here.

Directors' Remuneration

A consultative document on Directors' Remuneration published on 30th July 1999.

(Related speech).

Available in .pdf format (144k).

Summary of responses (135Kb)

On 7 March 2001, the Secretary of State announced that the Government is to introduce new disclosure requirements on boardroom pay to improve linkage between pay and performance and strengthen the position of shareholders. The press release to accompany this announcement may be viewed
here. (165Kb)

On 19 October 2001, the Secretary of State announced that the Government is to introduce secondary legislation which will require quoted companies to put forward a resolution each year on the directors' remuneration reports. The press release to accompany this announcement may be viewed here.

A consultative document on new legislation under the Companies Act 1985 was issued in December 2001. The proposals mean that quoted companies will be required to publish a report on directors' remuneration as part of the companies annual reporting cycle; disclose within the report details of individual directors' remuneration packages, the role of the board's remuneration committee, and the board's remuneration policy as well as specific requirements relating to the disclosure of information on performance; and put an annual resolution to the shareholders on the remuneration report. You may view the document here (Kb) .

Summary of Responses(104Kb)
Summary of Responses (72Kb)

The regulations implementing the changes - the Directors' Remuneration Report Regulations (SI 2002/1986) and the Companies (Summary Financial Statement) Amendment Regulations (SI 2002/1780) - came into force on 1 August 2002 and apply to quoted companies with financial years ending on or after 31 December 2002. They are available at the Stationary Office website.

On the 3 June 2003 a consultative document on Directors' Remuneration - Contracts, Performance and Severance was issued. To view the document click here

Dormant Company Simplifications

The Government has simplified and reformed the law on dormant companies, following a consultation last year. In particular, the Government has removed the requirement for such companies to pass a special resolution to gain audit exemption.

Summary of responses issued	4 April 2000
Press release Issued	4 April 2000
Consultation document Issued	March 1999

For a summary of the responses to the Government's consultation exercise, please click here (18kb). You can view the full details of the changes online.

The regulations implementing these changes 2000 No. 1430: "The Companies Act 1985 (Audit Exemption) ( Amendment) Regulations 2000" have been approved by Parliament and came into force on Friday 26 May 2000. The new regulations will apply to annual reports and accounts in respect of financial years ending on or after 26 July 2000.

Copies of the regulations may be obtained from the Stationery Office.

Electronic Communication: Changes to the Companies Act 1985

A consultation paper seeking views on proposals relating to electronic communications and changes to the Companies Act 1985. These changes would be made through the medium of a Bill to promote electronic commerce in order to enable amendments to be made to the Companies Act 1985 to facilitate specified electronic communications between companies and their members, and between companies and Companies House.

Available in .pdf format (64K).

Deadline for responses:1 April 1999.

A summary of responses to the consultation paper was published in July 1999.

Electronic Communications for Companies: An order Under the Electronic Communications Act 2000

A consultative document seeking views on a draft order amending the Companies Act 1985 legislation to authorise or facilitate the use of electronic communications or storage. The order deals with specified communications between a company and its members by electronic means. It will also allow companies to be incorporated at Companies House by electronic means.

Available in pdf format (96K)

Deadline for responses: 17 April 2000

Summary of responses issued 6 November 2000.

The Companies Act 1985 (Electronic Communications) Order 2000 entered into force on 22 December 2000. The Order is available at the Stationery Office website. A brief description and contact details are available here.

Investment Companies Share Repurchase Using Capital Profits

A consultative document was issued in March 1999 seeking views on the proposal that investment companies, within the meaning of the Companies Act 1985, should be allowed to repurchase their own shares using capital profits.

Available in .pdf format (50k).

An Adobe Acrobat pdf file is available of the Summary of the responses received to the above proposal.

On 11 October 1999 new Regulations were introduced - effective 8 November 1999 - changing the law. To see press release P/99/810 of 11 October 1999, click on link below, select Q4-1999 and then select entry for 11/10/99 Share Repurchases. Click here.

Political Donations by Companies

A consultative document seeking views on the implementation of the recommendations in the Committee on Standards in Public Life's report 'The Funding of Political Parties in the United Kingdom' relating to political donations by companies.

Available in pdf format (60k).

Summary of Responses

The Political Parties, Elections and Referendums Act 2000 received Royal Assent on 30 November 2000 and can be viewed at the website of Her Majesty's Stationery Office.

To access directly those parts of the Act which relate to political donations and expenditure by companies, please see the following:

Section 139 Control of political donations by companies

Section 140 Disclosure of political donations and expenditure in directors' report

Schedule 19 Control of political donations by companies: new Part XA of Companies Act 1985

Explanatory Note (not a part of the Act)

Charitable donations by companies not caught by new political donations provisions. Press release

Purchases by companies of their own shares for holding in treasury

A consultative document (104 kb) was issued in May 1998 (entitled "Share Buybacks") seeking views on whether there should be a change to company law to enable companies which had repurchased their own shares to hold them in treasury for resale at a later date.

A summary of responses to the consultative document was published in October 1998.

On 22 December 1999, DTI Minister Kim Howells announced that he had decided to deregulate company law to permit companies to hold repurchased shares in treasury and that further consultation would take place on draft regulations.

In September 2001, a consultative document including draft regulations was published (click here).

A summary of responses to the consultative document was published in May 2002 click here (239Kb) to view. This document is also available in
MS-Word format click here (74Kb)to view.
The Department considered these responses and revised the draft regulations to reflect them. A copy of the revised draft of the regulations, along with a commentary on the changes that were made to the draft regulations included in the September 2001 consultative document, was published in February 
2003 click here (184Kb) to view.

Regulations were laid before Parliament in both April 2003 and November 2003 and came into force in December 2003. The two sets of regulations - the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 (SI 2003/1116) and the Companies (Acquisition of Own Shares) (Treasury Shares) No. 2 Regulations 2003 (SI 2003/3031) - are available from Her Majesty's Stationery Office and may also be viewed at the HMSO website

To view guidance notes to the 2003 regulations click here (55b)

Statutory Audit Requirement for Smaller Companies

On Tuesday 4 April 2000 the Government announced major changes to the thresholds below which companies are exempt from the statutory audit requirement. This followed a wide consultation in which four out of five respondents favoured a significant increase in the thresholds.

Summary of responses issued	4 April 2000
Press release Issued	4 April 2000
Consultation document Issued	October 1999

The changes form part of a package of measures to lighten the accounting burden on smaller companies. You can view the full details of the changes online.

The regulations implementing these changes 2000 No. 1430: "The Companies Act 1985 (Audit Exemption) ( Amendment) Regulations 2000" have been approved by Parliament and came into force on Friday 26 May 2000. The new thresholds will apply to annual reports and accounts in respect of financial years ending on or after 26 July 2000.

Copies of the regulations may be obtained from the Stationery Office.

Regulation of the Accountancy Profession

There is a close alignment between public and private interests in maintaining and developing rigorous professional standards. This consultation document, published in November 1998, addresses the question of public policy of what system of regulation and discipline of the accountancy profession best serves the overall public interest and has the capacity to adapt as public interest considerations develop.
 

Raising the Threshold Levels for SMEs

The Government is considering the options for raising the thresholds by which Small and Medium Sized Enterprises ("SMEs") are defined to the maximum possible under European Law. In so doing, the Government will take full account of the Company Law Review's final recommendations on small company accounts.

For a summary of the responses to the Government's consultation exercise, please click here (12kb)

You can view the full announcement and press release online.

Raising the Thresholds

In July 2003 the Government published a consultation document on proposals to increase the audit exemption and medium-sized company thresholds.  A copy of the consultation document is available by clicking below:

Raising the Thresholds (127Kb)

On 19 November 2003, Patricia Hewitt announced that the audit exemption and small and medium-sized company thresholds would be increased to the EU maxima.  

To view the Press Release please click here then click on Press Notices.

A document summarising the responses to the consultation is also available.

Raising the Thresholds – Summary of Responses

DTI letter concerning EU Draft Recommendation on Statutory Auditor Independence

The Commission has been working closely with Member States through the EU Committee on Auditing to produce minimum standards applying in all Member States. The Draft Recommendation has been released by the Commission as a consultation document to enable individuals and organisations with an interest in such information to read it and comment on it.

Although comments may be made direct to the Commission by their deadline of
2 March 2001, DTI would welcome views before that date so that a co-ordinated UK response may be made.

Details, including the address for the Draft Recommendation on the Commission's website, are given in DTI letter concerning EU Draft Recommendation on Statutory Auditor Independence (letter of 18 January 2001 to Selected DTI Consultees).

Deadline for responses : 23 February 2001.

Financial assistance by a company for the acquisition of its own shares

A consultation paper, issued in November 1996, invited views on revised proposals for reforming the law on financial assistance for the acquisition of own shares (sections 151-158 of the Companies Act 1985).

In April 1997 we published our conclusions following the consultation.

Available as a pdf file (24k).

Return to Fair Markets Group

Contact Points  |  Company investigations  |  Company Law Review  |  Limited Liability Partnerships   |   Publications

Last revised November 2003