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Economic Crime & Corporate Transparency Act 2023 – Note to Directors

May 2024

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is a significant piece of new legislation. Busy directors may want a short, concise summary of headline points and the actions they need to consider in response. 

Our Note to Directors is such a concise summary and is drafted from a company secretary or administrator to a board of directors highlighting the key points of the ECCTA relevant to them and associated action points.

The Note to Directors includes how the ECCTA affects the following:

  • Directors
  • Company Information
  • Companies House Fees
  • False Statement Offences
  • Abolition of Statutory Registers
  • Register of Members
  • Persons of Significant Control
  • Company Secretarial Processes
  • Accounts & Reports
  • Lawful Purpose Confirmation
  • The Identification Doctrine

The note finishes with a useful list of potential action points.

As certain parts of the ECCTA are already in force with much of the rest expected to come into force during 2024, company directors must have a thorough understanding of the changes to what have been to date, longstanding company processes, practices, and procedures. 

Note that as of 1st May 2024 the new fee regime at Companies House has been introduced. Details of new fees can be accessed here

In addition, as of 2nd May 2024, Companies House can impose financial penalties of up to £10,000 for most offences under the Companies Act 2006. The ECCTA (Financial Penalty) Regulations 2024 give Companies House the power to impose a financial penalty as an alternative to commencing criminal proceedings for an offence. Companies House will need to be satisfied beyond reasonable doubt that the offence has been committed. The power is not available where the offence is under Part 12 (Company secretaries), Part 13 (Resolutions and meetings) of Part 16 (Audit) of the Companies Act 2006. Companies House is expected to publish guidance as to how it will exercise this new power before it starts issuing financial penalties.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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