In January 2023, a seller was ordered by the Court to pay legal costs and damages to his buyer in the sum £200,000 and he may have to sell his...
Review your company’s rule book
Is it time to update your company’s rule book?
With several million companies registered at Companies House, the UK’s streets and internet sites are piled high with goods and services.
With a boom in sales expected in this quarter in the run up to Christmas, business owners can see their revenues rocket, something that should not be spoilt by the time consuming complications of inadequate company documents.
The overhaul of old fashioned and convoluted company regulations that resulted in the Companies Act 2006 (the Act) coming into force has modernised legislation in this area, removing out of date, over-complicated provisions and replacing these with restructured, more efficient guidelines. One example of this is the introduction of a new default rule book, which governs how the company is to be run. This is known as the ‘Model Articles’ and contains a set of standard directions, which accompany and compliment the Act, replacing the older style ‘Table A’ Articles.
Companies are not under any obligation to update their Articles, however, a review of your company’s internal documents is wise to ensure directors are not leaving themselves exposed to complex, unnecessary and time consuming procedures. Whether you operate an existing company or are contemplating starting a new one, if you would like more information or guidance on suitable company documents the commercial team at WSP offers a wide range of services for all your business needs and would be delighted to offer assistance.
You can also read further articles on Commercial Law here.