The Elective Regime

The Companies Acts require a level of ongoing compliance which in practice many owner managed companies do not fully adhere to. One of the worst examples of non compliance (but thankfully one of the easiest to do something about) is the requirement to hold Annual General Meetings. By law these have to be held within 18 months of the incorporation of a company and thereafter in every succeeding year. There is also a legal requirement that at such Annual General Meetings the audited accounts and reports of the company are laid before the meeting and that the company's auditors are appointed or re-appointed on an annual basis.

So how does the hard pressed company director fulfil his obligations and avoid calling meetings which in practical terms may be unnecessary? The answer to this is by adopting what is known as "the Elective Regime". This rather grand title in fact refers to a package of resolutions which when adopted by the company will allow it to suspend these and certain other compliance requirements. While there are certain pre-conditions which have to be fulfilled, the procedures are very straightforward and can be adopted by written resolution which means that no actual meetings have to take place before these dispensations can take effect. We have a package of elective resolutions which can be adapted for most client companies. We are offering the package to existing clients at a price of £250 (plus VAT) per company. Please Contact Morinne Macdonald or David Beveridge.