The Act is an extension and modernisation of the Companies Act 1985, which was updated to make it easier to form and run a company, to enhance ‘shareholder engagement’ and provide a better environment for investors, to ensure better regulation, and to provide flexibility for the future.
When the Companies Act 2006 came into effect, it enacted a wide range of reforms to the way company law is governed. It set out the duties of company directors for the first time, and simplified some elements of company incorporation process.The Act is the primary piece of legislation which governs company law in the UK. The prime aims of the Act are:
