An Act (co-signed with the Constitution) to define the nature and extent of the roles of Companies House, registered companies, shareholders, and the trade of shares.

Article I: Companies

Section I: Definitions

1. A Company is a legal entity tracked and registered by Companies House and permitted to perform trade.

   1. A Company is to be named in a unique manner to be represented as “[Name of company] Ltd.” or “[Name of company] Limited”.
      1. A Company is permitted to use an alternative name to perform trade, known as a ‘trading name’.
      2. When using a trading name, the Company is to be represented as “[Name of company] [Ltd./Limited], doing business as [trading name]”.
   2. A Company is to be run by a Company Director.
      1. A Company Director is responsible for the operation of the Company.
      2. The Company Director must be a Shareholder in the Company.
   3. A Company is to be issued a unique Company Number by Companies House.
      1. The Company Number is to be unchanging through the life of the Company.

2. A Share is an individual ownership unit of a Company.

   1. Shares may be owned by individuals or Companies.
   2. A Company may issue as many shares as it wishes, provided that all shareholders approve of the issuance.
   3. Owners of Shares are permitted to sell part of or all of their Shares to another individual or Company.
   4. Shares are represented as physical or digital Share Documents as issued by Companies House.
      1. To issue a share, the Company must request a brand-new Share Document from Companies House.
      2. A Share Document may represent any number of shares, as displayed on the Share Document.
      3. A Share Document is only valid if it is signed by the Company Director.
      4. A Shareholder is permitted to send a Share Document to Companies House in exchange for the amount of Shares in the Share Document divided by an arbitrary amount.
         1. In this case, provided the original Share Document is valid, Companies House is permitted to sign the new Share Documents.

3. A Shareholder is an individual or Company who owns a Share of a Company.

4. An Audit is an investigation performed by Companies House into the activities of a Company or Company Director.

Section II: Responsibilities

1. A Company is required to keep track of the start of the company’s Financial Year.

   1. The start of the Financial Year is the anniversary of the date of the Incorporation of the Company.

2. A Company is required to file, at least once a year within each Financial Year, a Confirmation Statement.

   1. The Confirmation Statement (form CS01) is to be a form designed by Companies House.
   2. The Confirmation Statement is to require the Company Director to confirm that the information held by Companies House is up-to-date.
   3. The Company is responsible for ensuring that all Information held by Companies House is up-to-date.
      1. Failure for a Company to present up-to-date Information is subject to a fine of no more than $2500.

3. A Company is required to file, at least once a year within the Confirmation Period, the previous Financial Year’s annual Accounts.

   1. A Company’s annual Accounts must include the following information:
      1. A confirmation of the time period within which the Accounts are valid;
      2. A Balance Sheet containing the following information:
         1. A total of the dollar value of all assets owned by the Company;
         2. A total of the dollar value of all liabilities owed by the Company.
      3. An account of all profits and losses made in the Financial Year pursuant to the Account.
   2. The Company is responsible for ensuring all Accounts are up-to-date and accurate.
      1. Companies House is permitted to issue unlimited fines to Companies if they do not provide accurate and up-to-date information.
         1. Furthermore, The High Court, upon convicting a Company Director(s), is permitted to give a prison sentence of no more than fifteen years and an unlimited fine.
   3. The Balance Sheet must be itemised by Category at a minimum, however if the Company chooses to, it may be itemised by item.
      1. The following Categories are defined:
         • For assets:
           • Property;
           • Land;
           • Equipment;
           • Machinery;
           • Cash;
           • Shares;
           • Bonds;
           • Inventory;
           • Securities;
           • Other assets.
         • For liabilities:
           • Accounts liable;
           • Accrued expenses;
           • Debt;
           • Taxes payable;
           • Unearned revenue;
           • Other liabilities.

4. A Company Director is required to sign all new Share Documents issued by the Company.

   1. The Company is required to securely transmit Share Documents between owners.
   2. The Company is not permitted to mediate between the transfer of Share Documents between Shareholders, only the transfer between itself and the initial Shareholder the Share Document is intended for.
   3. The Company is required to report stolen Share Documents to Companies House.
      1. Companies House is required to invalidate any stolen Share Documents if they are found to have definitively been stolen.

5. A Company is permitted to send Share Documents it owns to Companies House in order to be destroyed.

   1. Companies House is required to request that the Company Director sign for this action in order to confirm its validity.

6. A Company is required to pay, in full, any and all Taxes owed to Companies House for a given Financial Year by the end of the next Financial Year.

   1. Companies House is permitted to allow a Company to only pay their Taxes in the form of installments if they are considered unable to pay their Taxes in full.

7. A Company Director is required to turn over, in full and without any modification, any and all information requested by Companies House during an Audit of the Company or Company Director.

Article II: Companies House

Section I: Taxation

1. Companies House must charge a Corporation Tax of twenty per cent a Company’s Profits in a given Financial Year.

2. If a Company pays no Corporation Tax for a given Financial Year by the given deadline, that company shall be placed under immediate Administration.

   1. If a Company pays at least ten per cent of its Corporation Tax for a given Financial Year by the given deadline, the remaining Corporatiion Tax owed will be rolled onto the next year’s Corporation Tax due.

Section II: Audits

1. Companies House is permitted to perform an Audit on any company at any time on suspicion of illegal activity.

   1. Companies House is permitted to suspend a Company’s activities and/or remove the Company Director from control from the Company at any time in the Audit process.

2. Companies House is to be permitted to collect any and all information from the Company Director pertaining to the Audit.

   1. Companies House must only collect data relevant to the Audit.
   2. If Companies House attempts to collect information unrelated to the Audit, the Audit is thereby invalidated.

3. Any Audit that has not been invalidated, concluded or otherwise, is usable as evidence in Court.

Section III: Miscellany

Article III: Stock Exchanges

Section I: Administration

1. A Stock Exchange is any company that purchases Share Documents from Companies, creates Exchange Securities backed by the Share Documents, and sells them to individuals and/or other Companies.

2. A Stock Exchange must be registered with Companies House prior to beginning operations as a Stock Exchange.

   1. A Company registered as a Stock Exchange may not partake in any other business activities.
   2. A Company registered as a Stock Exchange is not a Shareholder in any companies it owns the Share Documents of.
   3. A Stock Exchange’s Share Documents may not be sold to any Stock Exchange.

3. A Company is permitted to purchase its Share Documents back from a Stock Exchange at the listed price as part of a Stock Buyback.

   1. The Stock Exchange must pay the funds from the Buyback out to Shareholders before liquidating the Exchange Security.

4. A Stock Exchange is not permitted to trade on its own Stock Exchange.

   1. An Exchange Securitiy may not be backed by other Exchange Securities, nor by itself.

Section II: Trade

1. Any Company that sells its Share Documents to a Stock Exchange is to be considered a publicly traded Company.

   1. A Stock Exchange is permitted to require any Companies it lists to uphold requirements, including but not limited to a minimum share price, the publishing of Accounts to be publicly available, or a particular organisational structure.

2. An Exchange Security must be backed by no less than 0.00001 shares of a Company.

   1. An Exchange Security must be sold at a Price reflecting buyers’ intent to purchase the Exchange Security.
   2. A Stock Exchange must permit anyone wishing to make a Bid to purchase or sell an Exchange Security at an arbitrary Price.

3. An Exchange Security may not be backed by Shares of more than one Company.

   1. An Index Fund Security may be backed by Exchange Securities of one or more Companies.
   2. Index Fund Securities must not be easily confused for Exchange Securities.
   3. Index Securities must disclose which Exchange Securities they are backed by.

Section III: Miscellany

Article IV: Administration

Section I: Role of Administrators

Section II: Handling of Debts

Section III: Liquidation and Insolvency