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The Companies Act 2006 (Commencement No. 7, Transitional Provisions and Savings) Order 2008

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The Companies Act 2006 (Commencement No. 7, Transitional Provisions and Savings) Order 2008 List of acts
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Crown Copyright Acknowledged
CONTENTS

Statutory Instruments

2008 No. 1886 (C. 83)

Companies

The Companies Act 2006 (Commencement No. 7, Transitional Provisions and Savings) Order 2008

Made                                       16th July 2008

Laid before Parliament            17th July 2008

Coming into force in accordance with article 1(2) and (3)

1.Citation and commencement

2.Provisions coming into force on 1st October 2008

3.Transitional adaptations

4.(1) Section 644 of the Companies Act 2006 (reduction of...

5.(1) Section 652 of the Companies Act 2006 (liability of...

6.Interpretation of provisions brought into force

7.Transitional provisions and savings

8.Amendment of earlier commencement order

Signature

Explanatory Note

 

The Secretary of State makes the following Order in exercise of the powers conferred by sections 1296(2) and 1300(2) of the Companies Act 2006(1).

Citation and commencement

1.—(1) This Order may be cited as the Companies Act 2006 (Commencement No. 7, Transitional Provisions and Savings) Order 2008.

(2) Article 8 of this Order comes into force on 11th August 2008.

(3) The other provisions of this Order come into force on 1st October 2008.

Provisions coming into force on 1st October 2008

2.  The following provisions of the Companies Act 2006 come into force on 1st October 2008—

(a)sections 641(1)(a) and (2) to (6) and 642 to 644 (private companies: reduction of share capital supported by solvency statement);

(b)section 654 (treatment of reserve arising from reduction of capital);

(c)the following provisions—

sections 610(2) to (4) (application to share premium account as if it were paid up share capital);

652(1) and (3) (liability of members following reduction of capital);

733(5) and (6) (application to capital redemption reserve as if it were paid up share capital),

so far as relating to a reduction of capital under the provisions mentioned in sub-paragraph (a);

(d)section 1284(1) (extension of Companies Acts to Northern Ireland) so far as necessary for the purposes of the provisions mentioned in sub-paragraphs (a) to (c);

(e)section 1286(1)(a) and (2)(a) (extension to Northern Ireland of Great Britain enactments relating to limited liability partnerships), so far as relating to the application to limited liability partnerships of the subject matter of Part 15 (accounts and reports), Part 16 (audit) and Part 42 (statutory auditors);

(f)section 1295 and Schedule 16 (repeals), so far as relating to the repeals of the second sentence of section 141(4) of the Companies Act 1989(1) and of the second sentence of Article 75(4) of the Companies (No. 2) (Northern Ireland) Order 1990(2);

(g)paragraph 11(2) of Schedule 15 (amendment of definition of “regulated market” in section 103(1) of the Financial Services and Markets Act 2000(3)).

Transitional adaptations

3.
—(1) Section 641 of the Companies Act 2006 (ways in which company may reduce its share capital) has effect with the following adaptations.

(2) After subsection (1) insert—

 

“(1A) Where a company reduces its share capital under subsection (1)(a), the special resolution under this section must make any necessary alterations of the company’s memorandum by reducing the amount of its share capital and of its shares.”.

(3) In subsection (3) for “this section” substitute “subsection (1)(a)”.

 

(4) In subsection (6) for “the company’s articles” substitute “the company’s memorandum or articles”.

Transitional adaptations

4.—(1) Section 644 of the Companies Act 2006 (reduction of capital supported by solvency statement: registration of resolution and supporting documents) has effect with the following adaptations.

(2) In subsection (1)(b), for “a statement of capital” substitute “a memorandum complying with subsection (2)”.

(3) For subsection (2) substitute—

“(2) The memorandum must show with respect to the company’s share capital as reduced by the resolution—

(a)the amount of the share capital,

(b)the number of shares into which it is to be divided, and the amount of each share, and

(c)the amount (if any) at the date of the registration deemed to be paid up on each share.”.

Transitional adaptations

5.—(1) Section 652 of the Companies Act 2006 (liability of members following reduction of capital) has effect with the following adaptation.

(2) In subsection (1)(a), for “the statement of capital delivered under section 644 or 649” substitute “the memorandum delivered under section 644”.

Interpretation of provisions brought into force

6.  Where an expression in a provision brought into force by this Order—

(a)is defined in the Companies Act 1985(1) or in the Companies (Northern Ireland) Order 1986(2) (“the old definition”), and

(b)is defined in the Companies Act 2006 by another provision not yet in force for the purposes of the provision brought into force (“the new definition”),

the expression has, for the purposes of the provision brought into force the meaning given by the old definition until the new definition is brought into force for the purposes of that provision.

Transitional provisions and savings

7.—(1) Nothing in this Order affects the operation of section 140 of the Companies Act 1985 or Article 150 of the Companies (Northern Ireland) Order 1986 (liability of members on reduced shares) in relation to a reduction of capital under that Act or Order.

(2) Section 654 of the Companies Act 2006 (treatment of reserve arising from reduction of capital) and any order made under that section apply in relation to reserves arising from—

(a)a reduction of capital under Chapter 4 of Part 5 of the Companies Act 1985 or Chapter 4 of Part 6 of the Companies (Northern Ireland) Order 1986,

(b)a reduction of capital under the provisions of the Companies Act 2006 mentioned in article 2(a) above, or

(c)a reduction in the capital of an unlimited company not under those provisions,

irrespective of when the reduction occurred or the reserves arose.

(3) The provisions mentioned in article 2(e) have effect in relation to accounts and the audit of accounts for financial years beginning on or after 1st October 2008.

(4) Save as provided by article 2(e), nothing in this Order affects any provision of the Companies Act 1985 or the Companies (Northern Ireland) Order 1986 as applied by the Limited Liability Partnerships Regulations 2001(1) or the Limited Liability Partnerships Regulations (Northern Ireland) 2004(2) to limited liability partnerships.

Amendment of earlier commencement order

8.—(1) The Companies Act 2006 (Commencement No. 5, Transitional Provisions and Savings Order 2007(1) is amended as follows.

(2) In paragraph 15 of Schedule 4, after subparagraph (2) add—

“(3) In section 518 (rights of resigning auditor) as it applies in relation to an auditor appointed before 6th April 2008, the reference to rights under section 502(2) shall be read as a reference to rights under section 390(1) of the 1985 Act or Article 398(1) of the 1986 Order.”.

 
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