In this month's roundup of accounting legal cases and legislation, Gateley plc law experts examine the government's delay to plans to introduce a ban on the use of corporate directors, contract issues at stake in Arnold v Britton, and Ace Paper Ltd cases, and tricky interview situations lead to employment tribunal
New provisions to be inserted into the Companies Act 2006 by the Small Business, Enterprise and Employment Act 2015 will require all company directors to be individuals, effectively prohibiting the use of corporate directors.
As reported in May 2015 legal updates, the original proposals took the form of an outright ban with limited exceptions (principally, for listed companies and pension trustee companies).
But attitudes at the Department for Business, Innovation and Skills (BIS) appear to be softening, with the most recent consultation considering a ‘principles based’ exception to the ban.
This would allow a company to appoint a corporate director provided that corporate director itself only has individual directors and provided information about those directors is available via a publicly accessible register.
