Company law changes promise reduced red tape

Proposed new legislation will cut down on red tape for businesses in Northern Ireland, the Government has said.

Enterprise Minister Angela Smith said the Company Law Reform Bill will consolidate the UK's position as one of the best places in the world to set up and run a business.

The Bill will make major changes and improvements to company law and will see it move onto a UK-wide footing with the creation of the UK company entity to replace the Northern Ireland and GB company entities.

"This is a very important piece of legislation that will allow Northern Ireland businesses, for the first time, to benefit from de-regulatory and improvement measures at the same time as companies in GB," Mrs Smith said.

"The Company Law Reform Bill will make setting up and running a business much simpler. It will also make company law a lot easier to understand and more flexible, especially for small businesses."

The goverment's reforms regarding company legislation are designed to reduce red tape as well as promote shareholder engagement and provide clarity by restructuring those parts of company law most relevant to small businesses.

It will also set out simpler rules for forming a business and new model articles of association.

The Bill also includes a company law reform power to allow faster updating and amendment of company law in the future.

(MB/SP)