The Companies Act 2006 – revolution or evolution?

Purpose – The Companies Act became law in November 2006. Government spokesmen have claimed that it will simplify the running of the private companies that constitute the majority of registered companies and that it will enhance shareholder engagement in large quoted companies. Aims to question whether this is really the case.Design/methodology/approach – The article is a critical commentary.Findings – There are some good things in the Act but it can be argued that these hardly add up to a revolution, and the new Act remains full of regulatory requirements for all companies, something that will be compounded when the mass of necessary secondary legislation is introduced.Originality/value – Shows that evolution rather than revolution would seem a more apt description of this legislation.