DTI reform may aid small firms

The DTI claims that measures included in its new white paper, Modernising Company Law, will renew confidence and save small firms 170m a year.

The measures, published by competition minister Melanie Johnson, include statutory rights for auditors to obtain company information, and unlimited fines or two-year custodial sentences for those deliberately hindering auditors.

The proposals would also classify a further 15,000 companies as small, thereby simplifying their accounts. Private companies would no longer have to appoint secretaries or hold AGMs.