The Companies Act 2006 contained various sections and changes to the law which were due to come about over a set period of time. Different sections would come into force over a given time frame. Some changes took place last October, some are still taking place now.
Section 155 The Companies Act 2006
Section 155 of the Companies Act 2006 was due to come into force from September 2009, stating that every company must have at least one “natural” director – that being a human being of at least 16 years of age by October 2008. Historically, a company could have another company as its sole director. Some companies also opted to have a child in the directorship position. The legal changes made by section 155 mean this is no longer possible.
Legal Obligations & Potential Fines
The law now ensures that a person is responsible for the actions of the company. Even a dormant company is now required to have a natural director in place. Failure to comply could lead to fines of up to £5,000 for the company and the directors.
Companies formed before October 2008 were given an extension to the 1st of October 2010 to meet the legal requirements to appoint a natural director. Now that date has passed, they too risk a fine if they fail to meet the requirements.
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