LONDON - Upcoming changes from the Companies Act 2006 require businesses to substantially change the way in which they file their records.
From October 1st 2009, companies will have to meet stringent new rules, such as including details of Voting Rights in their annual return; re-filing any register locations outside of the main registered address and making sufficient provision for a declaration of Directors’ interests.
Thousands of companies are simply not aware of the potentially huge administrative burden that they have to be prepared for by the first of October and have not put into place procedures and process for coping with the changes.
The new Statement of Capital requirement means ‘Voting Rights’ must be entered for every share class of every company and to be replicated within the body of the annual return and associated forms. This could range in size from 1 to 100 pages of text, depending on company type.
Also from October 1st, Directors have a legal duty to ‘avoid a situation in which [they have], or can have a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company’. It is essential that companies have in place a mechanism for declaring Directors’ interests to other Directors in a timely and accessible manner.
In addition, tens of forms that are either new or which require extra information will be introduced from the October date.
According to Mark Selinger, Managing Director of Computershare Governance Services (CGS), many companies are risking non-compliance: “We spend a huge amount of time speaking with listed companies relative to reporting requirements and it worries me that so many are not ready for these changes. Almost every day, we’re meeting with companies who have not yet started thinking about introducing the necessary changes for October 1st. Really, they should be taking a good six to eight weeks to ensure that they’ll be fully compliant with the requirements and will not be risking penalties by being badly prepared.”
Failure to comply with reporting requirements under the Companies Act can lead to fines or even imprisonment for repeat offenders and Companies House has said that it will be much more stringent in imposing penalties on defaulters going forward.
CGS will be introducing an upgrade to its software in August 2009, which will include functionality to meet all of the new requirements, giving Company Secretaries plenty of time to prepare to meet the October deadline.
About Computershare Governance Services
Computershare Governance Services is the world’s leading supplier of entity management and subsidiary governance solutions. Today over 250,000 legal entities are administered, governed and kept compliant using our software.
We have over 500 clients around the world using our solutions and they are supported by our North American facilities in Toronto, Houston, New York and Shelton, Connecticut, our Asia Pac facilities in Melbourne and Sydney, and our European facilities in Munich, London and the headquarters in Monaghan, Ireland.
For more information, please visit www.cgs.computershare.com.
About Computershare Limited (CPU)
Computershare (ASX:CPU) is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. We also specialize in corporate trust services, tax voucher solutions, bankruptcy administration and a range of other diversified financial and governance services.
Founded in 1978, Computershare is renowned for its expertise in data management, high volume transaction processing, payments and stakeholder engagement. Many of the world’s leading organizations use these core competencies to help maximize the value of relationships with their investors, employees, creditors, members and customers.
Computershare is represented in all major financial markets and has over 10,000 employees worldwide.
For more information, visit www.computershare.com.
Source: Computershare
Media, please contact lucy.newcombe at computershare.co.uk, +44-870-7030041
Related Press Releases
GoldenSource Strengthens Pricing CapabilitiesSeptember 8th, 2009 LONDON and NEW YORK -
- GoldenSource EDM Suite Version 8.2 Provides end-to-end Price Management With Multiple Golden copy Capabilities
GoldenSource Corporation, a global software provider of enterprise data management (EDM) solutions for financial institutions worldwide, today released version 8.2 of its award-winning EDM suite which includes a major upgrade of its pricing capabilities. New workflow and validation tools will increase flexibility and transparency across all pricing functions, including P&L analysis, client reporting, product control, risk management, and finance.
G4S Chooses Clarity FSR(TM) for External Reporting NeedsAugust 31st, 2009 LONDON -
- Automation of Process to Produce Annual Report and Accounts to Shave Weeks From Financial Close to Announcements
Clarity Systems, a leader in corporate performance management (CPM) and external reporting solutions today announced that G4S, the world's largest security services provider, has purchased the Clarity FSR reporting solution to help produce the firm's financial reports and accounts, to release to the London Stock Exchange (LSE), the Copenhagen Stock Exchange and file with Companies House, beginning with the firm's fiscal 2009 annual report. "The rapid pace of the company's growth and the growing complexity of the financial reporting process compelled our Group Reporting team to find a more efficient way to collect and report our numbers," said Trevor Dighton, Chief Financial Officer, G4S.
Trintech Announces New Financial Reporting Solution with Embedded Support for XBRLJuly 26th, 2009 DALLAS -
- Trintech's Unity Xtensible Financial Reporting (XFR) Solution - Only Embedded XBRL Financial Reporting Tool to Integrate Fully with a Process and Workflow Management Module for the Financial Close
Trintech Group Plc (Nasdaq: TTPA), a leading global provider of integrated financial governance, risk management and compliance software solutions, is proud to announce today the availability of Unity Xtensible Financial Reporting (XFR), a financial reporting software solution with embedded support for the tagging and output of XBRL-compliant financial statements. As global accounting standards have started to converge, businesses are increasingly being required to understand and adopt XBRL as an enabling technology in enterprise wide disclosure initiatives being mandated by global financial governing bodies, such as the SEC's Final Rule in the US and HMRC in the UK.
TAM Files 2008 Form 20-F Annual Report in IFRSJune 30th, 2009 SAO PAULO -
- For the first time, TAM's annual report contains financial statements prepared in accordance with IFRS
TAM (NYSE: TAM, Bovespa: TAMM4), in accordance with its reporting obligations, filed its annual report on Form 20-F (the 2008 Annual Report) with the U.S. Securities and Exchange Commission (the SEC) today.
Software Tool Launched That Will Help UK Companies Significantly Raise Corporate Governance StandardsMay 31st, 2009 LONDON - Software Released as Consultation Closes on the Financial Reporting Council's Review of UK Corporate Governance
An innovative software service for FTSE company chairmen, directors and company secretaries is launched today, aimed at helping UK companies raise corporate governance standards at a time when they have never been under such intense scrutiny. The EnForm Corporate Indicator enables company boards to put good governance practice at the heart of board operations, improve communication among the board, management and stakeholders, and facilitate more productive board and committee evaluations.
Fortent Introduces All-in-One Financial Crimes and Compliance SolutionMay 17th, 2009 NEW YORK - Fortent Connect is First Complete System for Anti-Money Laundering, Fraud, Customer Due Diligence, and Reporting
Fortent (www.fortent.com) today announced the introduction of Fortent Connect, a solution designed to help mid-sized financial institutions fight crime and manage regulatory compliance. Fortent Connect is easy to use and implement, and delivers high performance at a competitive price.
World's First 'Unified Financial Governance' Solution - Clarity FSR(TM) 6.5 - Debuts at Vision:09 ConferenceMay 13th, 2009 TORONTO, Canada - Customers at Vision:09 - Clarity's Worldwide Annual Users' Conference - get First Look at Clarity FSR(TM) 6.5; Software That Automates Financial Governance Processes
Clarity Systems today announced general availability of Clarity FSR(TM) 6.5, a comprehensive, unified financial governance solution created for the Office of Finance to help improve financial processes and controls. As a single, unified financial governance solution, Clarity FSR supports the following critical financial functions:
Statutory Reporting - Clarity FSR provides advanced functionality to automate the creation and submission of statutory filings (like 10-Ks and 10-Qs in the USA) as well as automate key internal documents such as the Board Book.
Poor Little Feet: Are House Shoes a Health Risk?April 19th, 2009 SALZBURG, Austria - Do children's house shoes fit properly? This question was the subject of a study conducted on pre-school and elementary school children by an Austrian research team, commissioned by the Ministry for Health. The results: The smallest kids have the worst fitting shoes.
Tagetik Supports CFOs and CIOs With XBRL StandardApril 1st, 2009 LUCCA, Italy - The Extensible Business Reporting Language (XBRL) a Reporting Standard Embraced by the Securities and Exchange Commission (SEC and Other Regulatory Bodies Around the World.)
Tagetik, a global provider of Performance Management and Financial Governance software solutions, enabling companies to create financial reports according to the extensible Business Reporting Language standard. XBRL, defined by the SEC as the 21st Century Disclosure Initiative, a new system for financial reporting "accessible and easier to use, dynamic and organized around core company information", it is an open standard that guarantees a transparent innovative and effective financial communication.
Relsys International Announces the Release of the Argus Safety(TM) Suite 5.0March 17th, 2009 IRVINE, California - Relsys International today announced the release of the Argus Safety
Suite 5.0, the new standard in global Drug Safety & Risk Management systems. The Argus Safety Suite 5.0 is a full stack release.
Related News
SEC considers TARP transparency rules, better reporting of executive compensation practicesJuly 1st, 2009 SEC considers rules on pay disclosure, TARP firmsWASHINGTON — The Securities and Exchange Commission is debating proposed rules that would require firms that have received government bailouts to let shareholders vote on executive pay. Congress mandated the rule for participants in the Troubled Asset Relief Program, the $700 billion financial bailout.
SEC Chair says regulatory agency considering changes to CEO pay disclosure rulesMay 1st, 2009 SEC considering change to CEO pay disclosure rulesNEW YORK — The Securities and Exchange Commission is considering changing a formula that critics say often allows public companies to low-ball in regulatory filings just how much top executives are paid. At issue is how companies report in a summary compensation table found in their annual proxy statements the totals for stock options and stock awards, which often make up most of top executives' pay.
US online gambling laws breach WTO rules, says EUMarch 27th, 2009 BRUSSELS - The European Commission has said that US laws on Internet gambling breach World Trade Organisation (WTO) rules. The executive body of the European Union (EU), said its investigation had found the US laws on online gambling and their enforcement against EU companies constitute an obstacle to trade that is inconsistent with WTO rules.
Insurance regulator may issue 'embedded value' normsJune 11th, 2009 KOLKATA - The country's insurance regulator may issue norms for estimating "embedded value" of future insurance premiums by August, a top official said here Wednesday. "The guidance note is ready and it would be issued within two months," J.
Pakistani, Indian firms traded goods worth $900 mnAugust 13th, 2009 ISLAMABAD - At least 25,000 Pakistani and Indian companies traded goods worth Rs.74.32 billion ($900 million) last year, the National Assembly, the lower house of Pakistan's parliament, was informed Thursday. According to figures furnished by the trade ministry, 2,656 Indian companies traded goods worth Rs.8.92 billion with Pakistani companies, while 22,943 Pakistani companies had Rs.65.32 billion of trade with India, Geo TV reported.
SEC approves rule that lets shareholders of TARP firms to vote on executive pay practicesJuly 1st, 2009 SEC approves rule on pay disclosure for TARP firmsWASHINGTON — The Securities and Exchange Commission on Wednesday unanimously approved rules requiring greater transparency for executive compensation at bailed-out firms and all public companies. In an open meeting, the panel voted 5-0 for a rule requiring firms that received government bailouts to let shareholders vote on executive pay.
Companies fined for Oregon explosion that killed workerAugust 7th, 2009 OSHA fines companies for fatal Oregon explosionBOARDMAN, Ore. — Two companies have been fined a combined $90,000 for safety and health violations related to a February explosion that killed a worker in Boardman, in northern Oregon.
Germany, France call for looser accounting, bank capital rules during downturnJuly 6th, 2009 Germany, France seek looser accounting rulesBRUSSELS — German and French finance ministers are calling for looser accounting rules that would allow European banks to follow American rivals and avoid reporting heavy losses on troubled assets they cannot sell. Germany's Peer Steinbrueck and France's Christine Lagarde wrote to the European Commission on Monday, calling for urgent action from the independent agency that sets accounting standards in Europe.
Government issues stricter delisting normsJune 15th, 2009 NEW DELHI - Companies that have incurred losses for three consecutive years and have negative net worth can be delisted, the government and the securities market regulator announced Monday. Companies can also be delisted if the trading of their scrip has been suspended for more than six months, the finance ministry said in a statement.
SEC chief Mary Schapiro favors idea of shared regulator powers in monitoring against riskMay 8th, 2009 SEC chief backs 'systemic risk council' ideaWASHINGTON — The head of the Securities and Exchange Commission favors a new proposal for federal regulators sharing oversight of companies that pose financial risks to the economy. SEC Chairman Mary Schapiro said she's "inclined toward" the idea floated this week by the head of the Federal Deposit Insurance Corp.
