Dorsey attorneys Frances Doherty and Clara Eisenberg review in Taxation the new U.K. Companies Act. The Act represents a consolidation of laws applicable to U.K. companies and codifies common law, particularly in relation to directors' fiduciary duties. While certain provisions of the Act have already become law, others will not come into force until October 2008.
Doherty et al. suggest that while the Act is expected to reduce the administrative burden for private companies, it may impose additional compliance burdens on publicly traded entities. They recommend that companies and advisors familiarize themselves with the Act, review current practices - including merger and reorganization plans - and prepare for the law's full effect in October 2008. Read the entire article (PDF).
"A Guide to the Act" was published by Taxation, 24 May, 2007. Republished with permission.