New rules in force to benefit UK companies

Oct 10 2008 By Greig Cameron

Ambitious programme saves billions

The latest raft of new business rules came into force at the start of this month.

Under Government plans designed to ease the legislative burden only two days each year, April 6 and October 1, are used to publish updated regulations.

Business and competitiveness minister Shriti Vadera said: "Business asked the Government for Common Commencement dates. They help companies to plan ahead and save money.

"Many of the important changes coming into effect this October bring significant benefits for businesses. For example, abolishing the need to display insurance certificates and simplifying information requirements for firms will save them about £80million.

"Certain regulation is necessary to protect people and businesses across the UK. It ensures a level playing field, promotes competition and allows markets to operate effectively. However, we do understand that regulation is a concern for business.

"This is why we are driving forward an ambitious programme to save business and the third sector £3.5billion in administrative costs by 2010."

In total around 50 changes were made but many were small technical matters which have little noticeable impact. The main areas for businesses to consider are: Amendments to the Companies Act 2006 to crack down on cyber squatters.

An increase in the minimum wage for all workers.

Removal of rules requiring physical copies of Employers' Liability Compulsory Insurance certificates to be displayed and retained for 40 years. Businesses will now be able to do this electronically.

Consumers buying products and services from traders at home now have a legal right of seven days in which they can change their mind.

Patent and trade mark attorney company Marks and Clerk has welcomed the changes to the Companies Act 2006.

The amended legislation recognises issues around opportunistic company name registrations and seeks to take appropriate action.

It means any person or company can complain to The Company Names Tribunal should a trade mark or business name be opportunistically registered by another party who is trying to gain financially or prevent the original owner from registering the name.

The person with the similar business name then has to disprove the case.

Campbell Newell, managing partner of Marks & Clerk's Edinburgh office, said: "There is a common misunderstanding that in registering a company name your trade mark is automatically protected. This is not the case.

"However, in much the same way that brand owners can challenge cyber squatters who register similar domain names, these regulatory changes will deter the opportunistic registration of company names.

"At Marks & Clerk we offer advice to clients in choosing a trade mark prior to registering it and we have a specialist 'watching' service which enables us to alert our clients when similar company names or trade marks to theirs are filed for application or registration.

"Forewarned is forearmed. A company should protect the value of its name or trade mark assets and have the opportunity to take action against a rival application by using the opposition procedures employed."