The 1948 Companies Act was followed by the 1967 and the 1976 Acts, and now there is the 1980 Act introduced by the Government with the understanding that there would be another as soon as Parliamentary time will allow. The original purpose of the 1980 Act was only to bring British law into line with the requirements of the EEC, particularly with the Second Directive, but the pressures on the Government were so great that it added to the proposals two extra parts. These parts cover insider trading and directors’ responsibilities, and the last-minute change in the Bill was not to the entire satisfaction of the Opposition. One Member (Antony Grant) spoke of company law reform proceeding by a “series of hiccups”. The Labour Party would like much more sweeping reforms in Company Law than those introduced by the Government, but the Bill was passed after a large number of amendments had been discussed in both the Lords and in the House.

The Act is to come into force on a date to be designated by the Secretary of State, and when it becomes effective existing companies will have to decide what action to take.

The 1980 Act completely reverses the order of things. Whereas under the old legislation a company was a public company unless it took the steps necessary to make it a private company, under the new Act a company is private unless it registers as public. This means that existing companies (“old” companies in the language of the Act) must decide on their future status. An old private company does not have to do anything if it does not decide to change its status, but an old public company deciding to continue as a public company must re-register under the 1980 Act.

1. A directors’ resolution and 2. An amendment of the Memorandum.

1. A statement that the company is public