UK: The Registrar of Companies and Applications for Striking Off Regulations 2008 - published in draft

A draft copy of the Registrar of Companies and Applications for Striking Off Regulations 2008 has been published on OPSI and is available in HMTL and PDF. An explanatory memorandum has also been published. The Regulations (which are due to come into force on 1 October 2009) expand on the framework provided by the Companies Act (2006) and set out, inter alia, the circumstances in which there can be rectification of the Companies Register.

UK: House of Commons Business and Enterprise Committee reports

The House of Commons Business and Enterprise Committee has recently published two interesting reports. In its thirteenth report for the 2007/08 session, the Committee examined the operation of Companies House. The Committee concluded that Companies House "appears to be fulfilling its core functions reasonably well" but recommended a review of its role in verifying the information supplied to it. The Committee was concerned that users of Companies House were unaware that Companies House could not guarantee the accuracy of the information it held. The Committee also noted that the Companies Act (2006) could have given greater rectification powers to the Registrar to remove incorrect from the register without recourse to the courts.

In its fourteenth report, the Committee considered the accountability of the Secretary of State for Business, Enterprise and Regulatory Reform (Lord Mandelson), and the BERR ministerial team, to the House of Commons. The Committee was concerned that Members of the House of Commons were unable effectively to make their voices heard when a significant proportion of the BERR ministerial team was based in the House of Lords or shared with other departments. The Committee suggested:

The obvious solution, and the neatest, would be to the amend Standing Orders to allow the Secretary of State [Lord Mandelson] to answer questions at the Despatch Box [in the House of Commons]. But this may encourage governments to appoint more members of the House of Lords as heads of department, and that would be an unwelcome and significant constitutional change. Detailed discussion about a mechanism for parliamentary questions to the Secretary of  State for Business, Enterprise and Regulatory Reform is best taken forward by the Procedure Committee. However, we are convinced such a mechanism is needed, particularly at a time of such economic turmoil. We call upon our colleagues to look at this matter urgently, and upon the Government to co-operate fully in such an inquiry, particularly given the concerns expressed by the Secretary of State himself".

UK: implementing (and amending) the Companies Act (2006) - new Regulations

Within the past week or so, new Regulations have been laid before Parliament which provide further rules concerning the framework established by the Companies Act (2006). 

• The Companies Act 2006 (Annual Return and Service Addresses) Regulations 2008 - see here (PDF) and here (HTML) - an explanatory memorandum is available here.
• The Companies (Company Records) Regulations 2008 – see here (PDF) and here (HTML) - an explanatory memorandum is available here.
• The Companies (Fees for Inspection of Company Records) Regulations 2008 – see here (PDF) and here (HTML) - an explanatory memorandum is available here.
• The Companies (Registration) Regulations 2008 – see here (PDF) and here (HTML).
• The Companies (Particulars of Company Charges) Regulations 2008 – see here (PDF) and here (HTML).
• The Draft Companies (Disclosure of Addresses) Regulations - see here (PDF) and here (HTML) - an explanatory memorandum is available here.

Note: the Companies (Registration) Regulations 2008 contain the prescribed form for the memorandum of association as required under Section 8 of the the Companies Act (2006). 

UK: amending FRS2, FRS6 and FRS 28 - FRED published

The Accounting Standards Board has published a Financial Reporting Exposure Draft (FRED) in which it proposes changes to Financial Reporting Standard 2 ("Accounting for Subsidiary Undertakings"), FRS6 ("Acquisitions and Mergers") and FRS28 ("Corresponding Amounts"). The FRED will not amend the requirements of the existing FRSs. It will instead bring the legal references within them up to date, to reflect the Companies Act (2006) and the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008.

UK: more 'intrusive' regulation from the FSA

Today's Financial Times newspaper contains an interview with the FSA's chief executive, Hector Sants. Mr Sants states: “We do want to have a somewhat more intrusive approach to regulation ... The policy framework has failed us to some degree. But we need to understand that in addressing that, we will only be part of the process. ... We are acknowledging that we could have challenged those business models [of banks such as Northern Rock and Bradford and Bingley] more before they went into the downturn.”