Corporate advisers and general counsel are on heightened alert after the Government last week fired the starting gun on the implementation of the controversial Companies Act, ushering in sweeping governance reforms later this year.

The 28 February announcement from industry minister Margaret Hodge caught lawyers by surprise as the Government has committed itself to introducing some of the most contentious elements of the Act this October.

Key elements to be introduced in October include provisions relating to rights of indirect investors and the bulk of the sections on directors' general duties. Provisions on enhanced business reviews and derivatives claims will also be implemented on this date.