Question: Company Law Reform Act
‘It is the case that the UK still has not had a thorough review of the relationship between limited liability and unlimited liability legal forms for small firms and that the LLP’s role for small firms has not been properly addressed. Nevertheless, the need for a special limited liability company regime for owner-managed firms has been reviewed and rejected for clear and convincing reasons. The temptation to create a new legal form because other jurisdictions have something of this type has been resisted, rightly.’
In the light of this statement, evaluate the comparative treatment of the small firm and the reasons why the UK Company Law Review (CLR) rejected the creation of specialist legal forms for closely held companies.
Answer: In March of 1998, the DTI, concerned with the performance of the UK in the new global economy, and with the aim of creating a more competitive and efficient company law regime, set up the Company Law Review (CLR). The CLR was led by a Steering Group (CLRSG) whose aim it was, ‘to develop a simple, modern, efficient and cost effective framework for carrying out business activity in Britain for the twenty-first century.’ The CLR completed its report and presented it to the Secretary of State on 26 July 2001. In March 2005, a government White Paper entitled ‘Modernising Company Law’ was published. This White Paper contained the Government’s intentions to reform the current UK Company Law Framework to bring it more into line with the needs of modern business. The White Paper bec......(short extract)
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Details: - Mark: 71% | Course: Company Law | Year: 2nd/3rd | Words: 3372 | References: Yes | Date written: November, 2007 | Date submitted: March 30, 2011 | Coursework ID: 659
