Ban on corporate directors delayed until 2016Print publication
The Government has recently announced that the restrictions on corporate directors, which were originally due to be implemented in October 2015 under the Small Business, Enterprise and Employment Act 2015 (the Act), have been delayed until October 2016.
As a reminder, the Act aims to increase transparency about who is acting as a director of a company by restricting the practice of companies acting as corporate directors of other companies in certain circumstances.
Companies will need to review whether or not their existing corporate director will qualify as a “permitted corporate director” under (as yet unpublished) regulations which will contain exceptions to the new rules. It is the argument around the scope of those exceptions which lies at the heart of the delays.
It is hoped that corporate directors which themselves have only natural persons as their directors will be permitted, but this is yet to be confirmed.
We have written on this in more detail here.