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Spring 2008 Newsletter
Companies Act 2006
The Charities Act
The Energy Performance of Buildings (Certificates and Inspections) (England & Wales) Regulations 2007
New edition of Law Society Business Lease – 2008

Companies Act 2006
Summary After an 8 year consultation period The Companies Act 2006 finally received Royal Assent on 8 th November 2006. This sparks a radical reform of the law relating to companies and with over 1300 sections this legislation will replace almost all of the current Companies Act 1985. The changes have been made with the intention of deregulating the current legislation and simplifying the processes in place. The changes will undoubtedly have an effect upon Directors, Secretaries and Shareholders. Key provisions Some of the provisions are already in force as detailed below: Already in force Company Communications: Companies can now communicate with their members via electronic means. Previously information had to be passed by paper correspondence. Members may still request information to be provided in paper form. Disclosure of major shareholdings : Shareholders with a shareholding of at least 3% in traded companies (this is an extension to the previous requirement which cover shareholders of PLC companies) must disclose their voting rights. Takeovers: The takeover panel has now acquired powers to make enforcement rules.		October 2008 The DTI has stated that it intends that the remainder of the Act will be brought into force by October 2008 however a number of provisions will be effective before that date.  Some changes for Directors: Duty to promote company’s success, having regard to 6 broader social factors. Although corporate directors will still be permitted, at least one director must be a natural person. Minimum age of 16. Director can give a service address for the public record. No blanket protection for historic home addresses on the register. No upper age limit on directors. Some changes for Shareholders: Shareholders will have extended statutory right to bring claims against directors; Nominated person in a quoted company can receive information directly from the company; Shareholders' addresses only available upon request to the company and will not be disclosed by the registrar. In addition to the above there are numerous new provisions relating to the company constitution, formation process and financing which will have a dramatic effect on the way companies are required to operate. The DTI website sets out the timeframe for implementation, click here to view.

Charities Act 2006
Summary The Charities Act 2006 was enacted on 8 th November 2006 and now forms the substantial majority of charity legislation. At the heart of the Act appears to be an intention to bring charity law up to speed with current social trends and reflect our ever changing society. Various parts will be brought into force over a period which started in early 2007. An implementation plan which sets out this process can be viewed on the Cabinet Office’s website here. Key Provisions Charitable Purpose: In achieving this aim one of the key changes is an updated definition of “charitable purposes”. Until the 2006 Act there was no statutory definition of “charity” or “charitable purposes” and the Charitable Uses Act 1601 was used to assist with the classification of charitable purposes. In addition the Pemsel’s Case [1891] provided 4 principal divisions of charity: 1) the relief of poverty; 2) the advancement of education; 3) the advancement of religion; and 4) other purposes beneficial to the community The new “charitable purposes” will be implemented in early 2008 when the new Charity Tribunal is in place and are as follows: The prevention and relief of poverty; The advancement of education, religion, health or the saving of lives, citizenship or community development, amateur sport, arts, culture, heritage or science, human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity, environmental protection or improvement, animal welfare; The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage; The promotion of the efficiency of the armed forces of the Crown or the efficiency of the police, fire and rescue services or ambulance services; and Any other purposes charitable in law.		Some additional changes: In addition to the above there are a number of further amendments which deal with the following: The implementation of a public benefit test; An increased threshold for registration of a charity to £5000 Greater freedom for trustees of smaller charities Greater ability to use assets for other charitable purposes Changes to Memorandum and Articles of Association documents to reflect the charitable status. The concept of a Charitable Incorporated Organisation Changes to the way in which fundraising takes place Changes to the rules on Public collections Lasting powers of Attorney  Summary  The Mental Capacity Act 2005 has made provisions for people to not only choose someone to manage their finances and property should they become incapable but also to make health and welfare decisions on their behalf. This will be possible by the use of a lasting power of attorney which is due to replace the enduring powers of attorney in October 2007. Key Provisions  As a result of the abolition of enduring powers of attorney, it will in effect mean that the power of attorney will only come into force once the individual has actually lost their capacity. This is in contrast to the existing legislation which provides that the power of attorney can be used even where the individual have not lost their capacity.