Our website is set to allow the use of cookies. For more information and to change settings click here. If you are happy with cookies please click "Continue" or simply continue browsing. Continue.

Company Law

Analysis - guidance - compliance

26 APR 2013

Changes to the Mental Health Discrimination Act 2013

From 28 April 2013 the Mental Health Discrimination Act 2013 ("the MHDA") REMOVES Model Article 18(e) and its equivalents. 

Model Article 18(e) enables a company to treat a director as ceasing to hold his/her appointment "by reason of that person's mental health, etc....".  The following Model Articles and RTM drafts will be changing from that date:

  • Model Articles for private companies limited by shares - 18(e) removed
  • Model Articles for private companies limited by guarantee - 18 (e) removed
  • Model Articles for public limited companies - 22(e) removed
  • RTM England-23(e) removed
  • RTM Wales -23(e) removed

 

Why is the change taking place?

The MHDA applies to various pieces of legislation* in order to remove what is seen as the "last significant form of discrimination in law in our society" (MIND- mental health charity).  It is aimed at attacking outdated ideas that persons with mental health issues can never recover.  Please  note that Model Article 18(d) is still contained within the Model Articles and so a director's appointment may cease reason of physical or mental incapacity (subject to a medical practitioner's opinion).

Logistics

There are two issues in particular:

1.  What will the Model Articles now look like?  Will they be renumbered?  The MHDA does not give any indication on this point and BIS have not issued any statements saying that they will reissue the Model Articles.

2.   What about existing companies?    Companies with "old" (pre-28 April 2013) Model Articles will not be required to change them but would be well advised not to try and use  use 18(e) to remove a director as this would probably fall foul of anti-discrimination legislation   Many companies might wish to amend their articles to reflect good practice/governance.  Certainly, I imagine larger PLCs might wish to do this.

 

*Note - the MHDA also impacts on legislation relating to who can be a Member of Parliament and who can sit on juries.

 

Trade Marks

Law and Practice

A concise account of UK trade marks law within the European and international context.

More Info from £75.00
Available in Commercial Law Online

Data Protection

The New Rules

Is a complete guide to the current and new data protection rules, and is based on the final...

More Info from £65.00
Available in Company Law Online
Subscribe to our newsletters