As part of the Government's attempts to improve corporate transparency to guard against economic crime, last year, the Economic Crime and Corporate Transparency Bill, which is currently being scrutinised by the House of Lords, was introduced.
This Bill will result in several reforms, some of which include reforms to Companies House, which will impact company directors and shareholders.
If you are a nursery business owner, you may be wondering what it means for you. Significantly, Companies House's eagle eye will result in more stringent rules for company directors and shareholders, including:
- The introduction of identity verification
The Bill will introduce the need for identity verification for all new and existing registered company directors, people with significant control, and those who deliver documents to the Registrar. In a nutshell, this should help improve the accuracy of the data nd records at Companies House. More importantly, if a person fails to verify their identity and continue to act as a director, under this Bill, they will be committing an offence that is punishable by a fine. - Increased powers for the Registrar
The Bill will provide the Registrar of Companies House with further powers. This means that the Registrar will have new powers to check, remove or decline information that has been submitted or is already showing on the company's register. Needless to say, it will be crucial for the information on, and records at, Companies House to be accurate and up to date.
If you have any queries in relation to the above or require corporate and commercial legal advice relating to your nursery business and in particular your role as a director and/or shareholder, please contact Fiona Phillips on 01792 277 833 or fphillips@morganlaroche.com
