The fundamental review of the Company Law has been embarked by the United Kingdom. After the completion of the first stage in July 2001, the UK government started considering the reform proposals. The purpose of modernizing the company law is to facilitate enterprise and increase the attractiveness of UK as a location for doing business.

Three proposals were examined to make attractive business and to encourage the competitiveness of business. The first proposal was simplification to promote the creation and growth of business. The second was the corporate governance and the directors’ duties. The third was the institutional framework of regulation. If the proposals are carried out in the similar current form, then the United Kingdom company law will not only become more comprehensive but also more clear.

Developing an enterprise culture has become the major policy program in UK. The target set before UK by the government is to turn out as the best place in the world for starting and running a business.

For achieving the first place in the ranking, UK will have to leave behind Singapore which is at the first place in the USA. Company law reform is closely associated with the initiatives on insolvency law and the financial services.

The newly proposed legal framework, made according to the company law, measures a product which would be business competitive. The three areas where it can be decided about the relevance of the framework are- •    Simple access to corporate form •    Least interference with the management •    Right investor protection