The rules also widen the scope of information that can be
delivered electronically to Companies House. Companies will no
longer have to rely solely on company information being sent by
post.
The rules are contained in the Companies Act (Electronic
Communications) Order 2000 which came into force on 22nd December
2000. Under its amendments to the Companies Act, most companies can
now:
- Seek the agreement of shareholders to the distribution of
annual reports, accounts and other information on a web site, or
through other electronic communications; and
- Allow shareholders to use e-communications to appoint proxies,
and give them voting instructions.
Companies will be able to choose what type of electronic
communications medium best serves their purposes, such as
publication of information on a web site, or sending information by
e-mail, fax or other methods.
Neither companies nor their shareholders will be obliged to use
electronic communications; those companies wishing to use
electronic communications will have to agree with individual
shareholders.
In addition to the information that can already be sent to the
Registrar electronically, it will be possible later in 2001 to
incorporate companies electronically.
The timing of this will depend on having the necessary systems
in place and the Registrar of Companies issuing the appropriate
directions. Phil Coates of Companies House told OUT-LAW.COM that
the target date for enabling the electronic incorporation of
companies is 31st March 2001 for companies in England and Wales and
possibly a later date for Scottish companies.
The full
text of the Order
Best practice guidance on "Electronic Communications with
Shareholders" is available from the Institute of Company
Secretaries and Administrators (ICSA) at 16 Park Crescent, London,
W1B 1AH and a summary of key recommendations can be accessed on the
ICSA web site at www.icsa.org.uk (click “What’s New”
on the ICSA site).
