With effect from 2 May 2024, Companies House will have the power to impose civil financial penalties for most offences under the Companies Act 2006, following the Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024 being made.
Under the Regulations, the power to impose a financial penalty is an alternative to commencing criminal proceedings for an offence. In order to exercise the new power, Companies House will need to be satisfied beyond reasonable doubt that the offence has been committed. The power is not available where the offence is an offence under Part 12 (Company secretaries), Part 13 (Resolutions and meetings) or Part 16 (Audit) of the Companies Act 2006.
The Regulations also set out the process which Companies House needs to follow when issuing a penalty notice and the maximum penalty which can be imposed (which cannot exceed £10,000 in any event). According to the explanatory memorandum on the Regulations, Companies House will publish guidance on how it will exercise its new power under the Regulations before it starts issuing financial penalties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
