Companies act 2006: the impact on directors - update

When will the changes affecting directors come into effect?

Most of the provisions of the Act affecting directors are coming into force on 1 October 2007.

These include:

• Part 10, other than provisions relating to directors’ conflicts of interest, the register of directors, directors’ residential addresses, and underage and natural directors – these will be effective from 1 October 2008;
• derivative claims; and
• section 417 relating to the expanded business review.

The only provisions in the Act affecting directors which are already in force are those relating to the new statutory liability regime for misleading statements in directors’ reports. This new regime came into effect on 20 January 2007. In addition, the CA rules requiring disclosure by directors of their shareholdings in the company were repealed with effect from 6 April 2007, as were the rules imposing a maximum age limit for directors of public companies (and their private company subsidiaries).

Set out at the end of this briefing is an indicative implementation timeline of the provisions affecting directors.

See the Norton Rose briefing “Companies Act 2006: implementation timetable – further update” for details of the provisions which are already in force and proposed to come into force shortly.

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