Key Updates to the Law 2025 Syllabus

Chapter 1: Legal Principles and International Law

The Economic Crime and Corporate Transparency Act 2023 has been introduced to tackle economic crime and improve transparency in corporate entities. As outlined in section 1.6 of the Workbook, this Act reflects changing attitudes over time and aims to combat serious organised crime and corruption overseas. Key impacts include:

• Identity verification for directors, people with significant control, and those filing documents on behalf of companies
• Companies House can now link individuals to official documents to prevent fictitious individuals from being added to public registers

The chapter also adds content on statutory interpretation (section 1.4) and the evolution of laws over time.

Chapter 2: Contract Formation, Human Rights, and Legal Processes

This chapter introduces new content on unenforceable contracts in section 1.2, emphasising the difference between contracts required to be in writing and those evidenced in writing. It's crucial to understand that:

• Contracts required to be in writing need a formal contractual document with terms signed by all parties
• Contracts evidenced in writing only require written evidence of the agreement, such as emails or letters

The criminal court hierarchy is detailed in section 2.2, providing a clear structure of how cases progress through the legal system:

1. Magistrates' Court (tries minor offences)
2. Crown Court (tries major offences and hears appeals from Magistrates' Courts)
3. High Court (hears some appeals from Magistrates' and Crown Courts)
4. Court of Appeal (Criminal Division)
5. Supreme Court (final appeal court)

Section 2.3 covers Tribunals and Alternative Dispute Resolution (ADR), offering alternatives to traditional court proceedings for civil disputes. Employment Tribunals, for instance, are commonly used for employment law matters.

The Human Rights Act 1998 and its impact on UK law are discussed in detail in section 2.4, including:

• The incorporation of the European Convention on Human Rights into UK law
• The requirement for public bodies to respect individuals' Convention rights
• The impact on new legislation and its interpretation in courts

Chapters 6-12: Company Law, Insolvency, Criminal Law, and Employment Law

These chapters cover a wide range of updates, including:

Chapter 6: Types of Trade

Section 2.2 outlines changes to partnership regulations and liability, emphasising that:

• Partners can only be expelled if the partnership agreement explicitly allows for it
• Expulsion must be done in good faith and for legitimate reasons

Chapter 7: Companies: The Consequences of Incorporation

Section 7.1 introduces new requirements for company accounts and reports under the Modern Slavery Act 2015. Commercial organisations with an annual turnover exceeding £36 million must publish an annual modern slavery statement.

Section 7.3 covers updates to audit requirements and exemptions, including:

• Criteria for small companies to be exempt from audit
• New requirements under the Economic Crime and Corporate Transparency Act 2023 for companies applying for audit exemptions

Chapter 8: Companies: Ownership and Management

Section 1.1.1 introduces identity verification for company directors under the Economic Crime and Corporate Transparency Act 2023. This includes:

• Direct verification through Companies House
• Indirect verification through Authorised Corporate Service Providers (ACSPs)

Chapter 9: Companies: Finance

Section 2.7 provides updated information on dividends, clarifying that:

• Accumulated realised profits and losses can be both capital and revenue in nature
• Revaluation gains are not considered realised until the asset is sold
• Revaluation losses are treated as realised immediately

Chapter 10: Insolvency Law

Section 4.6 outlines changes to dividend regulations and priorities on liquidation, including:

• A 'ring-fenced' portion of assets for unsecured ordinary creditors when the distribution fund is at least £10,000
• Allocation of floating charge realisations to unsecured creditors

Chapter 11: Criminal Law

Section 3.1.1 introduces the new corporate offence of failure to prevent fraud under the Economic Crime and Corporate Transparency Act 2023. This applies to large businesses meeting specific criteria.

Section 3.2 highlights the growing threat of fraud and cybercrime, emphasising the impact of Artificial Intelligence (AI) on both criminal activities and law enforcement efforts.

Chapter 12: Employment Law

This chapter provides detailed coverage of the Modern Slavery Act 2015 in section 2.6, including:

• Offences related to modern slavery (section 2.6.1)
• Defence for victims (section 2.6.2)
• The role of the Anti-slavery Commissioner (section 2.6.3)
• Application of the Act to commercial organisations (section 2.6.4)
• Filing requirements for modern slavery statements (section 2.6.5)

The Modern Slavery Act 2015 is particularly important, requiring commercial organisations with an annual turnover exceeding £36 million to publish an annual modern slavery statement. This statement must describe steps taken to ensure slavery and human trafficking are not taking place in supply chains or any part of the business.

It's essential to understand these legal updates and their implications for businesses. Our Certificate Level subscription package includes comprehensive coverage of all new syllabus content. To access this valuable resource, click here.

To download our free PDF summary of the main syllabus changes, click the link below.