It is still unclear how some of the changes will affect existing companies, and it is too soon to say which resolutions companies will need to pass or which procedural changes they will need to make.
Be wary of some of the summaries of the Act that are available. Some do not distinguish adequately between the requirements for private companies (which the vast majority of the voluntary sector companies are) and public companies. When dealing with private companies, they may not distinguish adequately between companies limited by shares and companies limited by guarantee. And within companies limited by guarantee, they may not distinguish adequately between charitable companies, community interest companies, and companies which are neither charities nor CICs. For example, much is being made of the fact that companies will be able to amend their objects to have unrestricted objects, allowing them to do anything legal. But this provision will not apply to charitable companies, and may not apply to some CICs.
Provisions that are not yet in effect and are likely to affect voluntary sector companies can be found in our other Companies Act pages (see related links) and in the Draft Commencement Order No.3
The information on this site is a very brief, not a comprehensive, summary of the Act but contains the main points that apply to companies limited by guarantee. It does not cover companies limited by shares. Unless indicated otherwise, all of these changes will apply in the same way to charitable companies and CICs as to ordinary companies limited by guarantee. |
