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Company Law Changes – Lawful Activities Declaration
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The Economic Crime and Corporate Transparency Act recently came into force. This new legislation gives Companies House increased powers to tackle economic crime including the types of fraudulent activity that leaves unsuspecting trade creditors out of pocket. The hope is that these new measures will lead to improved transparency and more accurate and trusted information on the Companies House register.
Under the new legislation all companies will need to declare that the future activities of the company will be lawful. This will need to be confirmed every year on the company’s annual ‘confirmation statement’ which is filed with Companies House. A company will not be able to file a confirmation statement without making this declaration. This will apply to all confirmation statements from early 2024.
Presumably fraudsters will just make the declaration anyway but perhaps the declaration is more about giving prosecutors additional ammunition when they do manage to get fraudsters into court.
More information is available here: https://changestoukcompanylaw.campaign.gov.uk/confirmation-statement-changes/