DOC

Measure Initiative

By Justin Nelson,2014-08-09 11:04
16 views 0
Measure Initiative

2

29 November 2005

Introduction

Simplify@dti

Help develop DTI’s Simplification Plan

    As well a submitting your ideas on how DTI regulations and policies could be simplified to reduce burdens, we want to share the developing DTI Simplification Plan with you and to invite your views.

    The Table below sets out proposals from across our policy areas that we have so far identified for the first edition of our rolling Simplification Plan.

    The Plan includes measures that will take us to our ?1 billion target for deregulatory savings over the period of our 2005-2010 Programme. It will also help DTI to deliver a 25% reduction in administrative burdens.

Some of the work is well down the track for instance our major reform Company Law Reform Bill,

    and the roll out of Common Commencement Dates across our policy areas.

    There are many new ideas too. We will work closely with stakeholders in the coming weeks to test and strengthen these and to develop our project plans. Your input is vital in working these up.

Tell us what you think

    If you want to find out more about any of the items in our developing Plan or have views on how we can take them forward, let us know. Get in touch using the simplify@dti contact routes. You can find out

    more about this initiative at http://www.dti.gov.uk/simplify

    The main focus is on simplification of our domestic regulation. But we are continuing our work with the European Commission and other Members Sates to build a strong, competitiveness-focused programme of simplification at EU level.

    This is an important strand of the EU regulatory reform agenda. If you have proposals for reducing burdens from EU legislation, without undermining the policy goals, we want to hear about it.

What will the DTI Plan look like?

    Alongside a strong forward agenda for simplification across DTI policy area, our Plan will to set out a vision of what a Better Regulation department should look like in terms of its culture and its people.

    It will also seek to show how we work to deliver world-class regulation where it is needed to strengthen market frameworks and competitiveness, and to raise standards for citizens.

    3

    29 November 2005

    DRAFT DTI SIMPLIFICATION PLAN

    Company Law Obligation for paper Facilitate e-Comms Enhances the timeliness of Significant cost savings Before Reform Bill: communication with company communications related to the elimination of Parliament communication shareholders with stakeholders leading to paper communications. with shareholders reduced informational Initial estimates suggest that

    asymmetry etc the net benefit of this

    measure might be in the

    region of ?47m for FTSE-

    listed companies alone.

    However, since large

    companies can incur costs in

    the range ?100k - ?400k

    per mailing the above

    range is likely to be an

    underestimate.

    4

    29 November 2005

    DRAFT DTI SIMPLIFICATION PLAN Company Law Directors’ general The Bill will introduce a statutory Codification of directors’ Using data from the 2002 Before Reform Bill: duties are contained statement of director’s duties. duties will make the law in White Paper “Modernising Parliament codification of in case law and not this area more consistent, Company Law”, the directors’ duties always well certain, accessible and benefits accruing from

    understood comprehensible. greater clarity could be

     around ?30m - ?105m per

    The change of the law on year (assuming 8% 12%

    conflicts of interest is likely to of 1,245,000 private

    bring real, though companies (99,600

    unquantifiable, economic 149,400) no longer need to

    benefits, by making it easier take advice on this issue

    for a director to exploit that costs ?300 - ?700 per

    business opportunities that year per company)

    the company is unable or

    unwilling to exploit itself.

    Company Law Rewriting company Redraft law to provide clearer Simpler law will reduce SME representatives Before Reform Bill: law to think small structure and language. agency costs. SME business estimate that simpler law Parliament simpler law for first to improve representatives have argued will yield savings in the small firms comprehension and Provide better guidance. convincingly that simpler law, region of ?30m per year.

    accessibility which “fits small business However, the actual cost

    reality” better, will greatly savings will depend on final

    increase business confidence drafting of the Bill and its

    in the overall regulatory regulations. The full benefits

    environment and increase of simpler law will also

    compliance. depend crucially on the

    success of parallel non-

    legislative measures such as

    accessibility and guidance.

    5

    29 November 2005

    DRAFT DTI SIMPLIFICATION PLAN Company Law Obligation to hold The Bill includes measures to Data from the 2002 White Annual savings are Before Reform Bill: an Annual General streamline company decision-Paper “Modernising estimated to be around ?50 Parliament streamlining Meeting etc. making processes and to bring Company Law”, obtained -?150 per firm. Assuming corporate decision them more in line with the realities through consultation with 40% - 60% of the 1,245,000 making processes Procedures for of modern business life. stakeholders, confirms that private companies (i.e.

    written resolutions changes in this area are likely 498,000 747,000) take

    etc. to produce some of the most advantage of the change,

    significant deregulatory the savings will be ?25m -

    benefits as small, private firms ?112m per annum.

    may be able to avoid the

    need for unnecessary

    meetings.

    Although at first sight this

    might seem to make it easier

    for companies to dispense

    with input from shareholders,

    in practice more streamlined

    and efficient mechanisms for

    taking shareholder views

    ought to increase effective

    shareholder engagement.

    6

    29 November 2005

    DRAFT DTI SIMPLIFICATION PLAN Company Law Companies must Abolish requirement that private For the majority of smaller Using data from the 2002 Before Reform Bill: appoint a company companies have company companies, it is unlikely that White Paper “Modernising Parliament Remove secretary even when