Company law is to be reformed – and simplified – under plans which could save UK business up to £250 million a year.

The proposals contained in a White Paper published by Trade and Industry Secretary Patricia Hewitt are designed to promote enterprise by reducing red tape, increasing flexibility and encouraging a long-term investment culture.

The rules for forming a company will be simplified, with no need for a Company Secretary, new model articles and greater clarity on directors' duties.

Directors will be able to put a service address on the public record rather than a private address and the bill proposes making an AGM optional while giving shareholders the ability to vote by written resolution.

Accounting and audit rules are to be simplified while new measures will improve accountability and transparency within companies. The White Paper also proposes abolishing the rule that directors of public companies retire at the age of 70.

The proposals include recommendations for greater use of e-communications while removing the need for hard copy share certificates. There are also proposals to simplify the procedures for reducing capital and converting share capital from one currency to another.

Consultation on the proposals ended in June and the Bill is set to go before Parliament.

Our solicitors are ideally placed to advise you on the proposals at this stage and the potential affect on your business plans. As the new rules become law, we will be able to help with the detailed planning of your business affairs.