October 2015 implementation of The Small Business, Enterprise and Employment Act

10 October 2015

The next implementation of the Small Business, Enterprise and Employment Act took place on 10th October 2015.

One major part of this implementation will make changes to - and simplify - the 'consent to act' procedure for officers on appointment and incorporation.

For newly appointed directors and secretaries, a statement will be added to the relevant submission (whether made on paper or by electronic means) that the Company has evidence that the appointee has consented to act in that capacity.

Companies will be required to agree to this statement. This will replace the current consent to act procedure of providing a signature on forms and personal authentication (the 'three-of-seven') on electronic filings.

There will be no need for the 'three-of-seven' for consent to act from LLP members on incorporation. There will be a 'consent to act' statement on the LLIN01 and it will be made by whoever is signing the LLIN01 or making the electronic application ('either a solicitor engaged in the formation of the LLP or anyone who subscribed his name to the incorporation document'). That person will need to authenticate the filing in exactly the same way as they do now.

The existing provisions - the 'three-of-seven' items of personal information - will continue to be required for the subscribers to the Memorandum of any new Company whether limited by shares or by guarantee. If that subscriber is a corporation then the 'three-of-seven' items will continue to be required for the person who has the authority to act on behalf of that corporate entity.

A guideline to further implementations and timescales can be found at the link below:

https://www.gov.uk/government/news/the-small-business-enterprise-and-employment-bill-is-coming

We will keep you updated as this progresses through Parliament.

““We have used Bourse for all our company formations for many years and have always been very pleased with their prompt and efficient service and with the quality of the documentation they produce for our clients. They are also very helpful and knowledgeable when we ask them for advice and guidance on other Company matters””

Chartered Accountants - Cirencester