What Do You Mean By The Term “Company” In the UK?

When you go to any of the Corporate Lawyers of the area, either they tell you the loopholes of the sections or the sections of the bare act which you cannot understand properly. So let’s discuss few basic terminologies of our companies act 2006, UK.

First thing is what do you mean by a company?

So the bare act says that,

“Companies

(1)In the Companies Acts, unless the context otherwise requires—

‘Company’ means a company formed and registered under this Act, that is—

(a) A company so formed and registered after the commencement of this Part, or

(b) A company that immediately before the commencement of this Part—

(i) Was formed and registered under the Companies Act 1985 (c. 6) or the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)), or

(ii) was an existing company for the purposes of that Act or that Order,

(Which is to be treated on commencement as if formed and registered under this Act).

(2)Certain provisions of the Companies Acts apply to—

(a) Companies registered, but not formed, under this Act and

(b) Bodies incorporated in the United Kingdom but not registered under this Act

(3)For provisions applying to companies incorporated outside the United Kingdom (overseas companies).”

So now you know the meaning of company which you already have or you are going to open. So this time when you will meet any of the Corporate Lawyers you can get a better understanding of what they are saying or trying to tell you. The law can be written in plain and simple words then people can easily misuse it. It needs to be written in such a way that it covers almost all the traps and holes which can help the wrong person to escape from the justice. So it automatically becomes complicated for the layman.  But if you read the act and talk with the lawyer in this sequence only then there are chances that you can understand it in a better way and can use it in a proper way only.