What this covers
Why you need it
Parliament created it. The power to require it comes from Companies Act 2006.
What the Act carries
What our graph holds for Companies Act 2006 as a whole — the Act behind this licence, not the licence conditions themselves.
- Duties on businesses
- 451
- Penalties
- 116
- Exemptions
- 99
Duties on businesses under the Act
- File a statement of capital and initial shareholdings during incorporation s.10
- Submit a statement of compliance when registering a company s.13
- Have and register articles of association unless using model articles s.18
- Send amended articles to Companies House within 15 days s.26
- Fail to forward resolutions to Companies House s.30
- Notify Companies House when changing your company's objects s.31
… and 445 more business duties in the same Act.
What happens if you get it wrong
- Acquire own shares without authorisation 2 years imprisonment
- Make false statement to auditors in directors' report 2 years imprisonment
- Disclose confidential information in breach of legal restrictions 2 years imprisonment
- Disclose confidential information obtained under compulsory powers 2 years imprisonment
- Disclose or misuse information from tax authorities 2 years imprisonment
… and 111 more penalties in the same Act.
Exemptions that may take you outside it
- Allotment for non-cash consideration exempt from pre-emption rights — The new shares are (or will be) paid for with non-cash consideration (e.g. assets, services, property) rather than cash
- Anonymised summaries exempt from disclosure restrictions — The disclosure is for the purpose of providing a summary or information framed so that the identity of the individuals …
- Audit-exempt companies can make distributions from unaudited last annual accounts — Company is exempt from audit and its directors take advantage of that exemption
- Auditor names can be omitted from reports if there is a serious violence risk — The company reasonably believes stating the auditor's name would create a serious risk of violence or intimidation, has resolved to …
- Audit supervisory bodies exempt from damages liability — Acting in the discharge of functions as a recognised audit supervisory body
… and 94 more exemptions in the same Act.
Read our full dossier on Companies Act 2006
Who issues it
Your local council issues this. Councils apply the same statute but set their own fees, conditions and timescales.
Where to apply
Duty, penalty and exemption labels are Guvnor’s analysis of the enabling instrument, not the instrument itself. Fees, forms and conditions are set by the issuing authority — always check the linked source.