A Temporary, But Welcome Change From Companies House
Part Of The Corporate Insolvency And Governance Act 2020 ...
Posted by Roger Eddowes on 23/07/2020 @ 8:00AM
With many business owners and fellow directors isolated from each other during the COVID-19 pandemic, Companies House have temporarily changed the conditions for approving year end accounts ...
This announcement from Companies House is very welcome!
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This is very welcome, not just by directors, but also by accountants who are experiencing practical difficulties of actually undertaking some accounts and audit work. The changes came into force on 26 June 2020 after the Corporate Insolvency and Governance Act 2020 received royal assent on 25 June 2020.
Here are a some of the main changes:
During the period up to 5th April 2021, more time has been granted to file the accounts and the previous need to apply for the COVID-19 extension is no longer required. For example, a private company with an accounting period date of 31 December 2019 now has a filing deadline of 31st December 2020. However, we believe its good practice to file accounts earlier than this to avoid problems with credit ratings
Companies House have agreed to accept electronic signatures rather than 'wet' ones, presumably because directors don't have printers that work at home
Where the directors cannot meet in person, it is permissible for a board meeting by be conducted by electronic means such as telephone or video conferencing, unless the Company's governing articles specifically prohibit it. It's worth noting that the procedures of giving notice of an 'electronic' meeting to director must still happen and minutes of the said meeting must still be circulated to each director for approval.
A public company is now able to hold its annual general meeting (AGM) electronically. Normally the AGM is held within six months of the end of the financial year and if the date falls between 26 March and 30 September 2020 there are some extension provisions available.
I feel this is a very welcome move from Companies House and it certainly makes the lives of directors and business owners slightly easier for the foreseeable future.
Until next time ...
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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