Changes in Companies House coming...

[Ozzy]

A rushed through response from Government last night on reforms at Companies House off the back of the invasion of Ukraine, which I cannot help but feel sad that it took something like this for the Government to act - but here we are.

This is off the back of the Corporate Transparency & Register Reform consultation, and what I spoke to Martin Swain from Companies House about last week here..

So for those with an interest in what is happening, and now being rushed through with some legislation being rushed through Government even today, some bedtime reading. I think @The Resolver will find this particularly interesting too.

A few highlights are that all directors and persons of significant control on UK companies will have their ID verified, and overseas agents will not be allowed to register UK companies for their clients. Companies House will also be given the power to deal with fraudulent filings which they currently don't have the power to do so.

 

[WaveJumper]

Yes very sad thats its taken the current situation in Ukraine to carry out this long overdue reform of the system, thanks for the update and links

 

[The Resolver]

Await the detail of the legislation but really pleased it now gives the Registrar power to remove false information. Bit concerned it seems more focused on fraud whereas many cases I deal with (false claims to removal of a Director) might not amount so much to criminal activity. In fact the Report refers more specifically to false claims that someone has become a DIrector than is no lomger a Director.But I am happy with the increased discretion and powers to the Registrar and I feel If CH acts on false claims to removal that it will enable easier and speedier solutions for my clients than through court action. Thanks Ozzie for keeping us in the picture and your contribution to the research.

 

[Lisa Thomas]

Interesting, thanks - I've shared on Linked In.

 

[2020Lawyer2020]

The problem with a lot of new admin such as for covid passenger locator forms and much else is a real criminal just has a fake or borrowed passport and you have 99.9% of innocent genuine people with the huge hassle of going through new hoops and the real criminals just evade the rules anyway so I am not convinced it will help. Eg the richest cellist in the world is a friend of Putin who never in a million years made the money playing the cello.

However I agree there is a problem with people particularly in directors' disputes removing the fellow director illegally and notifying companies house of that and it all being a mess as a result...

 

[Joanna154]

Does any one know if Companies House have actually received any of the new powers as mentioned above? Is there anywhere I can follow to find updates on this?

 

[Ozzy]

No they haven't yet. Rumour is that the bill will be in the Queen's opening of parliament next week so it's allocated parliamentary time, and I'll be following it very closely.
My campaigning on this is done via my main business and BDG webinars and not really UKBF due to the audience of our clients (being banks, etc) who have a keen interest, but I will share anything significant in the UKBF newsletter.

 

[The Resolver]

Looks like they've broken their promise and the CH legislation has been omitted from the Queens Speech and thus from the next round of legislation. Boo - hiss

 

[Ozzy]

Looks like they've broken their promise and the CH legislation has been omitted from the Queens Speech and thus from the next round of legislation. Boo - hiss

Are you sure this doesn't come under the Economic Crime Bill statement?
The last Companies House changes re overseas entities was put into the Economic Crime (Transparency and Enforcement) Act and it's my understanding the next trench of updates will come under the same.

 

[The Resolver]

You may be right - but legislation to prevent Donald Duck being registered as a company director might not give CH the powers they need to correct misinformation that falls outside fraud such as (alleged) ignorane of company law requirments to remove a director.

 

[Ozzy]

legislation to prevent Donald Duck being registered as a company director

This was covered in their white paper on changes being introduced, which included ID&V of all directory and PSC information, so no one can be appointed to a company until their ID has been checked and verified. Then the discretionary powers being introduced to the registrar allows for retrospective correction and questioning of any data the registrar has reason to challenge.

 

[The Resolver]

OK found the item in the Queens Speech being the Economic Crime and Corporate Transparency Bill.

Trawling throgh comments but see nothing so far about register corrections for anything less than ID fraud. Hopefully it in there but intesrting enough for the commentators.