OpenLegislation

Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Order)

These Regulations amend the Companies (Unregistered Companies) Regulations 1985, which apply certain provisions of the Companies Act 1985 to unregistered companies. The amendments have the effect of applying to such companies the new provisions relating to:

  • the capacity of companies to enter into transactions;

  • the power of directors to bind companies;

  • the absence of a duty on a third party to enquire whether a company has capacity to enter into a transaction or whether the directors have authority to do so; and

  • the invalidity of certain transactions involving directors, etc.

which are inserted into the Companies Act 1985 by the Companies Act 1989.