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Critical Evaluation of The Companies Act 2006 and its comparison to The Companies Act 1985
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- Words:
- 2766
- Submitted:
- Mon May 04 2009
- Mark submitted by Author:
... The Companies Act 2006 aims to ensure that a company can operate with more flexibility and choice. The Companies Act 1985 was extremely regulated and facultative; 'Company law developed mainly with the public company in mind. The provisions that apply to private companies are often expressed as an exception to the provisions applying to public companies, making them difficult to understand.'1 The aim of the new act is to create clearer and less structured regulations that private companies can understand and adapt to the way in which they wish to operate. The simpler articles of association and the de-regulated approaches in which company decisions can be made in theory create a less structured and more efficient basis on which a company can function and reflect modern business requirements. The directors of a company are responsible for the general running of a company and as such they are expected to make
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