A number of provisions from the Companies Act 2006 finally came into force with the final implementation of the Act on 1 October 2009.
However, the Act has been examinable in the F4 Paper for some time, albeit the examiner has expressed some concern about candidates still answering questions with reference to the old legislation.
It is very important therefore to ensure that your study materials are up to date.
As an example, one of the provisions which has just come become effective in practice is the changed allowable uses of the Share Premium Account.
Use of share premium is now restricted, so that only the premium arising on a specific issue of shares is available to write off any expenses or commission associated with that issue.
It is no longer possible to use an existing balance on share premium to write off the costs of a new issue of shares. Neither is it possible to use the share premium account to write off any formation expenses nor to write off costs/provide for premium associated with the issue/redemption of debentures.