Amendments proposed to the Companies (Audit, Investigations and Community Enterprise) Bill [Lords] - continued | House of Commons |
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Mr Andrew Mitchell 40 *Clause 39, page 36, line 42, after 'appears' insert 'on reasonable grounds'.
Mr Andrew Mitchell 38 Schedule 7, page 70, line 14, after 'may', insert 'if it appears reasonably necessary for the purposes of the investigation'.
Mr Andrew Mitchell 39 Schedule 7, page 70, line 19, at end insert'(1A) The investigator of a community interest company must give reasons in writing for any requirement imposed under sub-paragraph (1) above, such reasons to be given to the company or other person to whom the requirement is directed.'.
Jacqui Smith 2 Schedule 8 , page 72, line 21, column 2, at end insert
Jacqui Smith 1 Clause 65, page 50, line 18, leave out subsection (2).
REMAINING NEW CLAUSESFunding of director's expenditure on defending proceedings
Jacqui Smith NC2 To move the following Clause:
"337A Funding of director's expenditure on defending proceedings (1) A company is not prohibited by section 330 from doing anything to provide a director with funds to meet expenditure incurred or to be incurred by him
(3) Nor does section 330 prohibit a company from doing anything to enable a director to avoid incurring such expenditure. (4) Subsections (1) and (3) only apply to a loan or other thing done as mentioned in those subsections if the terms on which it is made or done will result in the loan falling to be repaid, or any liability of the company under any transaction connected with the thing in question falling to be discharged, not later than
Amendment of Companies Act 1985: limit on auditor's liability (No. 2)
Mr Andrew Mitchell NC4 To move the following Clause:'(1) Section 310 of the Companies Act 1985 (c 6) (provisions exempting officers and auditors from liability) is amended as follows. (2) In subsection (2) delete "subsection" and insert "subsections". (3) After subsection (3) insert "(4) A company may, in pursuance of such a provision, enter a contract with any such auditor to limit any liability which by virtue of any rule of law would otherwise attach to him in respect of any such negligence, default or breach of duty to an amount equal to twenty times the fees paid in respect of the audit of the company, provided such contract is approved by members in general meeting. (5) Where an act of negligence, default or breach of duty arises in two or more consecutive periods of account, the liability under subsection (5) shall be restricted to twenty times the average of the audit fee for the company for those periods of account.".'.
Amendments of Companies Act 1985: limit on auditor's liability (No. 3)
Mr Andrew Mitchell NC5 To move the following Clause:'(1) Section 310 of the Companies Act 1985 (c 6) (provisions exempting officers and auditors from liability) is amended as follows. (4) In subsection (2) delete "subsection" and insert "subsections". (5) After subsection (3) insert
(5) Where the company is a member of a group of companies the sum of £75 million shall be divided between members of the group pro rata to the audit fee charged to each company within the group, provided such contract is approved by members in general meeting. (6) Where an act of negligence, default or breach of duty arises in two or more consecutive periods of account, the liability under subsection (4) shall be restricted to £75 million for those periods of account.".'.
Amendment of Companies Act 1985: limit on auditor's liability (No. 4)
Mr Andrew Mitchell NC6 To move the following Clause:'Section 310(3) of the Companies Act 1985 (c 6) (provisions exempting officers and auditors from liability) is amended, by adding at the end
Limit on auditor's liability (No. 1)
Mr Andrew Mitchell NC7 To move the following Clause:'The liability of an auditor which by virtue of any rule of law would otherwise attach to him in respect of negligence, default or breach of duty shall be limited to an amount equal to the proportion of the total loss or damage suffered which is directly attributable to the negligence, default or breach of duty of the auditor, having regard to the contribution to the loss or damage of any other person.'.
Limit on auditor's liability (No. 2)
Mr Andrew Mitchell NC8 To move the following Clause:'(1) The liability of an auditor which by virtue of any rule of law would otherwise attach to him in respect of any negligence, default or breach of duty shall be limited to an amount equal to twenty times the fees paid in respect of the audit of the company. (2) Where an act of negligence, default or breach of duty arises in two or more consecutive periods of account, liability under subsection (1) shall be restricted to twenty times the average of the audit fee for the company for those periods of account.'.
Limit on auditor's liability (No. 3)
Mr Andrew Mitchell NC9 To move the following Clause:'(1) The liability of an auditor in respect of any liability which by virtue of any rule of law would otherwise attach to him in respect of any negligence, default or breach of duty shall be limited to the sum of £75 million. (2) Where the company is a member of a group of companies, the sum of £75 million specified in subsection (1)(b) shall be divided between members of the group pro rata to the audit fee charged to each company within the group.'.
Limit on auditor's liability (No. 4)
Mr Andrew Mitchell NC10 To move the following Clause:'(1) The liability of an auditor in respect of any liability which by virtue of any rule of law would otherwise attach to him in respect of any negligence, default or breach of duty shall be limited to the lower of
Director's Report (Statement of Payment Practice)
Brian Cotter NC11 *To move the following Clause:'In Part VI of Schedule 7 to the Companies Act 1985 leave out paragraph 12(3) and insert "The report shall also state the company's payment performance record, in line with a standard format that shall be specified by the Secretary of State in regulation.".'.
Jacqui Smith 3 Title, line 1, leave out second 'and' and insert ', to the provision that may be made in respect of certain liabilities incurred by a company's officers, and to'.
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