Law firms could see an increase in corporate governance work as a result of new rules coming into force next month.


Provisions in the Companies Act 2006, which take effect on 6 April, will mean small companies are no longer required to employ a company secretary. Many are expected to use external lawyers to act as their 'corporate conscience' instead.



Simon Welch, chairman of the Commerce & Industry Group's corporate governance committee, said the change promised new opportunities for law firms.



Welch added: 'Companies trying to get by without a company secretary will still need to meet their legal obligations - and to do so they'll need advice from external law firms.'



Janis Law, group chief solicitor at professional business services company Jordans, said that a survey of small companies conducted by her firm had shown that more than a third saw advantages in no longer having a company secretary.



She added: 'The danger highlighted by our respondents is that companies may fall into default with important filing obligations if there is no company secretary to deal with them. And so they are likely to look for external help - from law firms or others.'



Jonathan Rayner