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ARTICLE · 08 JUNE 1999

Steering On Company Law?

Hammonds
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United KingdomEmployment and HR
You will be familiar with the story of the lost townie who stops his car and asks a bemused yokel for directions to an obscure rural village. The yokel thinks for a minute and then replies: "Well, if I were you, I wouldn't start from here".

Perhaps the same thought crossed the minds of The Company Law Review Steering Group as they read their own consultation document, "The Strategic Framework", published earlier this year. This describes the issues to be considered in effecting the wholesale review of UK company law. It is the first step in the process commenced by a DTI paper in March 1998: "Modern Company Law for a Competitive Economy", with new legislation scheduled for 2002.

The document identifies the considerable problems which face the legislators. Our company law originated in the last century and has been developed piecemeal ever since. There can be little argument that in parts it is obsolete and/or at odds with modern commercial reality. Equally there is no question

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