The Government’s aim is to simplify company law and make it easier to understand, especially for small businesses – yet it is the longest piece of legislation passed by Parliament since it was established by Oliver Cromwell in the 17th century. Eight years in the making, the Act runs to 1,300 sections and 701 pages.

There are a number of reasons for its length. It is a consolidating Act that, once fully in force, will be the single statutory source of company law. About a third of it re-states existing laws. A further third almost restates existing laws, putting them into simpler English. A final third is new.

Writing it in plain English to make it more accessible to smaller businesses has, in a number of instances, required the draftsmen to re-write short sections of the Companies Act 1985 in a longer way to aid comprehension. On the other hand, it is set out more logically than the current companies statutes. The parts relating to small businesses are set out separately first, followed by the greater requirements for larger public companies and then the further requirements that fully listed companies must meet. Currently company legislation is written from the perspective of large public companies, with exceptions for private businesses, but one of the new Act's key themes is "think small first". It should make it much easier for smaller businesses to find and understand the law that applies to them.

The Companies Act explained

Part 1: the longest piece of legislation ever

Part 2: timetable for introduction

Part 3: directors' duties

Part 4: claims against directors

Part 5: company secretaries

Part 6: auditors' liability

Part 7: greater rights for non-registered shareholders

Part 8: deregulation for small businesses

Part 9: electronic communication with shareholders

Part 10: shareholders' addresses

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