The Regulatory Impact Assessment for the Company Law Reform Bill was updated after the Bill was brought from the House of Lords (24 May 2006) to reflect the amendments that had been made to the Bill since introduction. The Bill is expected to bring savings for business of some £250 million a year, of which £100 million will be for small businesses. As well as the direct savings, the Bill is also expected to lead to indirect benefits, through improved performance, for example through encouraging good practice in company decision-making.
The direct costs associated with the Bill are expected to be in the range of £8 million to £47 million. The majority of these costs (£6 million to £36 million) are associated with opposition amendments to the "Exercise of Members' Rights" provisions made in the House of Lords. The Government intend to reconsider these during the consideration of The Bill in the House of Commons.