Firms turn to accountants for legal advice

News Article - 03 May 2007
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More business directors rely on their accountants for support in implementing the Companies Act rather than their lawyers, a study has indicated.

Recent findings by law firm Leeds Legal showed that 60 per cent of businesses which sought advice chose to receive guidance on the act from their accountant rather than an attorney, Legal Week reports.

Simmons & Simmons corporate partner and member of the Confederation of British Industry's companies committee Charles Mayo told the publication: "Smaller businesses in general tend to turn to their auditor as a general adviser rather than their lawyer."

In addition however, the research found that 42 per cent of businesses had not sought any advice regarding the Companies Act, while 37 per cent said that they were not aware of the legislation.

The Companies Act, which received royal assent in November last year, is due to be implemented in full by October 2008.

Under the law, private companies benefit from various factors, such as easier decision-making processes through the use of written resolution, the Department for Trade and Industry claims.

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