Statements of capital - proposed reforms

Of the many complaints regarding the frequently poorly designed new Companies House forms, most have centred on the requirement for lengthy statements of capital to be filed on each occasion that the issued share capital of a company is varied. In particular, the obligation to set out the detailed rights attaching to each class of shares has always seemed a waste of time when this can be ascertained relatively easily from the company's articles of assocation and/or the resolution conferring authority to allot the new class of shares. As it is usually the lawyers who prepare the forms for filing, it can mean an additional 5 - 10 units of an assistant's time.

Thankfully, it appears that the Department for Business Innovation and Skills now agrees, and following consultation at the end of last year, has concluded that there is "ample scope" for simplification. A shorter form of capital statement is due to be introduced later in the year. Not before time.