A range of actors, including the domestic and regional (i.e. EU) legislatures, national and international standard-setting bodies, and private and voluntary sector organizations, supply the legal and nonlegal norms, principles, standards, guidelines, and rules that go to make up the framework which is assigned with the task of governing corporate finance and related activities in the whole of UK. The common purpose underlying this vast body of regulatory activity is to establish an optimal package of commands and incentives to stimulate desirable behaviour and to curb undesirable behaviour by affected parties. Some of the main elements of the regulatory framework are as follows.
Legislation The Companies Act 2006 is the principal piece of primary legislation relating to the formation, operation, and control of companies. This Act applies to companies incorporated in Great Britain (England, Wales, and Scotland) and also to companies incorporated in the remaining region of the UK, Northern Ireland. The Companies Act 2006 was enacted with the aim of bringing company law more into line with the realities of modern business. Extensive changes made by this legislation were largely based on an independent review of company law which was conducted between 1998 and 2001 by a group of experts brought in by the government.
Would you like to read the full article?