London, 25 September 2020 – ICSA: The Chartered Governance Institute has welcomed the Government’s response to last year's consultation on Corporate Transparency and Register Reform, in which the Government looked at options to enhance the role of Companies House and increase the transparency of UK corporate entities.
Peter Swabey, Policy and Research Director at the Institute, comments:
“This is a huge commitment. It is the biggest reform of the company registration since it was introduced by the Joint Stock Companies Act in 1844 and will take a huge investment in IT capacity at Companies House, transforming the way in which it operates.
“For too long, the role of Companies House as a repository of data has not met the needs of modern business. That is not a criticism – it has simply not been given the powers that it needs. It has not been able to verify data, simply to receive what it has been given with inevitable effects on the accuracy of the data held. But no longer. Last Friday’s announcement is a pretty radical package, so it is important that the Government takes the time to get it right. Many of the changes will require legislation – and Parliamentary time is, as ever, short. The Government has committed to publishing detailed proposals for consultation before action is taken but, at least in outline, the proposed way forward is clear. And, although there is a lot of detail needed, all those interested in the better governance of UK companies will welcome the proposed changes.”