An Isle of Man Government press release of August 2 2005 promised the creation of a new type of business-friendly company that would be simple and inexpensive to administer. The Companies Act 2006 came into effect on November 1 2006 creating the 2006 Act Company. The 2006 Act operates in parallel to the Companies Acts 1931 – 2004 which govern the traditional type of company (a “1931 Act Company”).
Several years into the existence of the 2006 Act Simcocks sees the two different types of company as “horses for courses”. Which is more suitable for a particular client’s needs depends on the situation. A characteristic of one type of company which might be an advantage in one situation may be a disadvantage in a different situation.
In our November 2006 paper* we set out some notable characteristics of 2006 Act Companies as follows:-
- There is no distinction between public and private companies.
- A 2006 Act Company need only have one director and that director can be a company. It must also have a registered agent but there is no reason the registered agent cannot be the sole director.
- Particulars of directors do not need to be filed with the Registrar of these companies.
- There is no need for a company secretary.
Read the full comparison here: Practical Comparison of the 1931 and 2006 Isle of Man Companies Acts