Company correspondence - Do you know about the new rules?
Company law in England and Wales is in the process of being shaken up, with the Companies Act 2006 having received Royal Assent in November 2006. The Act is being introduced in phases, but due to the magnitude of its implications, many have overlooked the introduction of the Companies (Registrar, Languages and Trading Disclosure) Regulations 2006. These are a direct descendant from Europe and specify certain company information which should be included in company websites and emails. In summary, the following information should be easily identifiable:
Company name
Company registration number
Place where the company was registered (e.g. England and Wales or Scotland)
Registered office of the company
Company (or group) VAT number
In the case of an investment company, the fact that it is such a company
In the case of a company which is exempt from using "limited" as part of its name, the fact that it is a limited company
In the case of a company which is in the process of being wound up, a statement to that effect
These requirements were already in place in respect of written correspondence (by letter and fax) and order forms. From a practical perspective, it is advisable that invoices also contain this information. As regards emails, the easiest place to include this information would be in the autosignature, where there should already be some form of email disclaimer.
Failure to comply with these regulations will make the company liable to a fine. However, in addition, any director who issues or authorises correspondence which does not comply with these regulations may also be personally liable to a fine.
As evidenced by these new regulations, trading over the internet and use of websites is now a part of day to day business practice. You may also need to consider whether you have appropriate privacy policies and terms of use for your websites. These govern how you process personal data and define how people use your websites, which you would of course want to be done on your terms.
If you have any questions, or if we can be of any assistance, please feel free to contact Salim Somjee on 01689 887869 or by email at mailto:salim.somjee@cwj.co.uk?subject=Company%20correspondence.
