Economic Crime and Corporate Transparency Act 2023 (ECCTA)
Companies House serves as the central register for all companies incorporated in England and Wales, holding a comprehensive record of these businesses since its establishment in 1844. However, it has always relied on the filing party to ensure the accuracy of the information provided. As a result, it is common for the register to contain manifest errors or missing information.
Expanding the role and powers of Companies House
Due to the war in Ukraine and the sanctions levied against Russia, the UK Government has brought the Economic Crime and Corporate Transparency Act (ECCTA) into force. A key goal of ECCTA is to clean up the information kept at Companies House and promote the integrity and accuracy of the registrar.
This article is the second in a series about the Economic Crime and Corporate Transparency Act 2023 (ECCTA).You can read the first article in the series here.
The latest key new powers given to Companies House are as follows:
- More powers to challenge and reject documents and information that appears to be incorrect.
- Powers to strike off a company registered on a false basis.
- Powers to change a company’s name.
- Powers to amend the register.
- Powers to annotate and remove material from the register.
These changes are significant and as a result, Companies House fees are increasing across the board to support their new role and responsibilities.
A major area concerning these changes is the powers of the Companies House to annotate and leave comments on a company’s register. Given that the record is public, this could be seen as a source of embarrassment or could even result in lenders reviewing their funding offers/arrangements.
What next?
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is being rolled out in stages, with further significant changes planned in the coming months such as mandatory ID verification for directors and shareholders, wider enforcement powers for Companies House and new data-sharing powers with law enforcement and other governmental departments. We recommend staying informed about these upcoming changes. We’ll continue to provide updates as the ECCTA unfolds.
If you would like to discuss your company’s register and see how our experienced corporate and commercial team can assist, then please call us today on 01752 203500. You can also email me directly at jack.ross@GAsolicitors.com.
GA Solicitors in Plymouth has a highly established and regarded commercial team. It is ranked in Chambers UK and The Legal 500. We can guide you through all the upcoming changes and ensure your business is protected.
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