What is Shareholders' Rights Directive?

The Shareholders’ Rights Directive will become part of UK law in August 2009. According to BERR, the Directive’s aim is to: ‘improve corporate governance in EU companies traded on regulated markets by enabling shareholders to exercise their voting rights and rights to information across borders’.

Many of the provisions in the Directive are already in force in the UK, through the existing legal and governance framework. BERR is currently consulting on the following changes which, when agreed, will be implemented through amendments to the Companies Act 2006:

· advance notice and prior information for meetings
· the abolition of “share blocking”
· removal of legal obstacles to electronic participation
· shareholders’ rights to ask questions at meetings
· voting by proxy
· members’ powers to require directors to call general meetings.

How to start a company

Starting your own company should be an easy and straightforward process, when done with a specialist in this area. There are many firms offering online company registrations quickly and cheaply. But the price you pay usually reflects the level of service or support you can expect from them, which is often minimal or non-existing.

Do some research and find a company who will not only check if the name you have chosen for your organisation can be registered, but who will also advise you on the type of company which is the most suitable for your needs and future plans, prepare the memorandum, articles of association, statutory registers and other documents required by Companies House in a professional and timely way, and who will guide you through the whole registration process providing legal and business recommendations should you need them.

As a budding entrepreneur you will feel more confident knowing there is an experienced team of professionals assisting you at all times.

What do I need to start a company?

A private company limited by shares, the most commonly used type of business organisation, requires you to choose directors and other shareholders and decide on the amount of share capital. However, you will also need the following to start operating your business:

· corporate bank account
· registered office address
· business cards, letterheads and other stationery
· email address and website (this requirement is becoming more and more relevant)
· business policies, like health & safety, data security policy, and other depending on the nature of your business
· a qualified company secretary, if you value your time and don't want to waste it preparing and submitting to Companies House required legal documents and annual returns. Outsourcing this function to a professional organisation might be one of your best cost-and-time-effective decisions.

It is also recommended that you insure your business and obtain relevant software licences for your business operations.

Why start your own business?

There are many reasons to start your own business. These reasons vary from person to person. It may be that you've decided that you don't want to work for someone else, or that you've had a brilliant idea that you can sell to the public. It can also be that you've acquired skills in a previous position that allows you to work in an independent manner. Either way, new businesses enable new ideas or models to be developed and infuse current technologies or methods to mass benefit. To begin a business is to bring together your acquired skills with your available resources.

There are a few things to consider before thinking abort starting your own business.

· Can it make sufficient money to be a sustainable business venture?
· Can you produce a working proto-type to act as a demonstrator or demonstrate your skills obtaining references from clients?
· Is there a market for your product?
· To Whom are you aiming it?
· Are you able to sustain high levels of production should it become a commercial success?