The Mental Health (Discrimination) Act 2013 has now received Royal Assent and will come into force on 28 April 2013.
The Act amends the model articles set out in Schedules 1 to 3 of the Companies (Model Articles) Regulations 2008 (SI 2008/3229) to remove the provisions requiring the automatic termination of a director's appointment if that director's rights or powers are restricted by a court order on mental health grounds.
The Act therefore revokes Article 18.1(e) of both the model articles for private companies limited by shares and private companies limited by guarantee and Article 22(e) of the model articles for public companies.
Similar amendments are made to the model articles for right to manage companies as set out in the RTM Companies (Model Articles) (England) Regulations 2009 (SI 2009/2767) and the RTM Companies (Model Articles) (Wales) Regulations 2011 (SI 2011/2680).
The Act does not make any provision for articles of association which do not adopt the model articles. However companies not adopting the model articles may want to consider removing any similar provisions from their articles.
The Act can be viewed here: