The long-awaited final report of the Company Law Review was published today at the Department of Trade and Industry Conference Centre By DTI secretary Patricia Hewitt and quickly gained support as having attempted a ‘fundamental reform of company law’.
Michael Groom, president of the ICAEW, said: ‘We hope today’s government endorsement of the review will pave the way for much needed legislation in order to lighten the burden of regulation on entrepreneurial businesses and to enhance the attractions of the UK as a centre for global companies.’
The ICAEW is particularly pleased with the recommendations to establish a Company Law and Reporting Commission to prepare an annual report on the state of company law.
There was also a welcome for a proposal to introduce a new codification of company directors’ duties.
Roger Davis, chairman of the ICAEW’s Company Law Steering Group, said: ‘The accountancy profession will have important part to play in providing assurance in respect of the new information that will be required.
‘We want to get on with the job and hope that the government will act swiftly to usher in this new era in company transparency and accountability.’
Among the other recommendations of the review is a rise in the audit threshold to £4.8m.
Small companies, it says, should not have to hold AGMs or lay accounts at a general meeting, or appoint auditors unless they absolutely want to.
Large private companies should be required to publish an operating and financial review as part of the annual report.
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