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FSB welcomes Companies Act

19/12/2007  10:20:07

 


 

The Federation of Small Businesses (FSB) has welcomed the Companies Act 2006, which was last week finally scheduled for implementation over the next two years.

The Companies Act is one of the few acts that can be considered deregulatory and overall is "a good move", the FSB said.

Although the act will not have major implications for small businesses, the removal of the legal requirements to have a physical Annual General Meeting (AGM) is a good thing for SMEs.

Company directors of SMEs will now be able to "hold a virtual AGM on the internet, which saves costs".

The FSB said it also supports the fact that the Companies Act does away with the need for a company secretary position.

Belinda Webb, a spokesperson for the FSB, said: "Fifty per cent of FSB members are incorporated but would be run on very tight margins and we do not envisage the other measures with the Companies Act, surrounding funding, to have major implications for our members."

However, Ms Webb welcomed the introduction of the Act, saying that "it creates genuine one-person companies and it cuts down on regulation".

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