A fair, modern, and effective framework of company law is crucial to our performance as an economy, and as a society. Britain was among the first nations to establish rules for the operation of companies, and our law remains a model for many nations overseas.
But over time the law can become outdated, and risks presenting obstacles to the ways companies want and need to do business in today’s world. We are determined to avoid this. That is why we established the Company Law Review, to consider in detail how our law can best be modernised.
The Review has been universally recognised as providing a thorough and authoritative assessment of the sorts of changes which need to be made, and it provides the essential blueprint for the reforms we now propose. I am enormously grateful to all those who have participated in its work. We have continued to explore every opportunity for reform which will bring the law more into line with today’s business needs, and remove unnecessary burdens, particularly from the smaller firms which are so critical to our economic health.
This White Paper sets out a range of measures for the proposed Company Law Reform Bill. They have been designed to further four crucial objectives:
Taken together, I believe these measures represent a huge step forward in ensuring that our law remains up to date, flexible, and accessible for all those who use it. They are essential if we are to maintain our internationally competitive position, and I look forward to your comments.
The Rt Hon Patricia Hewitt MP
Secretary of State for Trade and Industry,
Minister for Women and e-Minister in Cabinet