Academic journal article Manager

Bill Could Revolutionise Business Formations

Academic journal article Manager

Bill Could Revolutionise Business Formations

Article excerpt

The Government plans to introduce a new legal vehicle for businesses in summer 2000 which may revolutionise the way in which businesses in the UK are structured. Baljit Chohan, of law firm Edge Ellison says: " The idea is quite simple; it will be possible to set up a business entity which will have all the benefits of limited liability but will not be bound by many of the rules which may constrain the activities of a limited company

"This means that, for example, it will no longer be necessary to hold formal meetings or to take decisions using a fined percentage of votes. The distinction between directors and shareholders will also go. Instead there will be members and designated members; designated members will be responsible for the filing obligations at Companies House.

"Furthermore, the business will no longer need a formal publicised set of rules dealing with internal management and there will be no rules requiring maintenance of capital. This means the business will not have to comply with the restrictions of the Companies Act ig85 concerning distribution of profits or return of capital. …

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