A day on from the government's budget pledges on deregulation the CBI is welcoming reforms published today (Thursday). It says they will make company law clearer and more accessible and reduce the regulatory burden, especially for smaller companies.
Responding to the draft Company Law Reform Bill, the CBI welcomed the government's commitment to consider the impact of regulations on small companies at the outset.
The bill includes a model constitution for private companies to use and will get rid of the obligation for smaller companies to hold annual general meetings unless shareholders want them.
CBI Deputy Director General John Cridland, said: "This is a significant first strike in the programme of deregulation we've just been promised in the budget. It achieves the right balance between removing unnecessary and burdensome obligations from smaller companies while keeping necessary protections for shareholders, employees and customers.
"For example it has never made sense for a private owner-managed companies to be obliged to hold an annual general meeting when the directors and shareholders are the same people.
"Setting out directors' responsibilities will particularly help those becoming directors of companies to understand their legal responsibilities as well as making them clear to shareholders.
"It is also right that company directors should not have to publish their home addresses. Of course creditors deserve the protection of a business address on the public record but directors and their families should not be put in danger when going about a legitimate business. They deserve protection too."