The Act will mean deregulation for small businesses.

From next month, private companies will be able to take decisions more easily and quickly, without holding formal meetings. Instead, they will be able to take almost all decisions in writing. The only decisions that will still require a meeting to be held are those to remove a director or the company’s auditors. They will also no longer need to hold annual general meetings.

From April next year, there will be a separate code of accounting and reporting requirements for private companies.

From October next year, they will have a special constitutional document - the articles of association - tailored to their needs rather than having to adapt something designed with public companies in mind. It will also be quicker and easier to form a company than currently. And they will be able to give financial assistance for the purchase of their own shares and to reduce their share capital more easily without having to go to court.

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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