Amongst the proposals aimed at streamlining the formation and administration of companies, there is a proposal for new companies to adopt a single document company constitution, consisting of the articles of association. This will be simpler and clearer for both private and public companies and will replace the existing ‘Table A’. Separate model articles of association will be available for private companies, which will contain the minimum key rules on the internal workings of the company.
The requirement for a private company to have a company secretary will be abolished, although it may continue to appoint one if it wishes.
| Comment While the office of company secretary will not be mandatory, the responsibilities previously carried out by the secretary will continue to exist. |
The existing rules regarding capital maintenance and share capital provisions are complex and the Bill proposes to simplify these by removing unnecessary and burdensome requirements for private companies. In addition, under the Bill, private companies will not be prohibited from giving financial assistance for the purchase of their own shares, provided they are not subsidiaries of public companies.
The requirement to have an authorised share capital will be removed for both public and private companies.