PROPOSITIONS FOR REMOVAL OF DISCRETION UPON OWNERSHIP OF COMPANIES IN UK

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g8A major issue that was announced at the G8 summit from the UK Prime Minister David Cameron was the topic of ‘Transparency and Trust’. The report was prepared by the Department for Business, Innovation and Skills (BIS). As announced the report raised concerns of ownership and control of companies and proposed that reforms are needed to enhance transparency of company ownership. The report consisted of 2 parts. The first part was ‘Transparency’, which dealt with the issue of real ownership and control of UK companies and looks to inject greater transparency around who really owns and controls a company in the UK. The main stipulator which raised this topic is the government’s long time battle against tax evasion, money laundering and terrorist financing. The discussion paper also increased awareness that these steps will improve the investment climate and make doing business easier as the barriers will promote confidence in the market place and encourage additional investment. The second part of the report was ‘Trust’. This part explained and raised concern with the accountability of the directors for misconduct and corporate failures and sets out ways of making directors more accountable for misconduct or company failure. Solutions to the topic where announced as follows: The need for greater regulation, Greater powers to disqualify directors in specific sectors and Allowing courts to discipline directors for the unlawful actions as impacted upon social matters. In summary, the report is promoting changes to compliance measures. Eltoma Corporate Services team is qualified to handle and provide solutions to all the above mentioned and can assist you if you believe that you may be affected by the changes. Please feel free to call us for various solutions that we may offer.