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S.C.A.

Amendment Paper as at
Thursday 16th September 2004

STANDING COMMITTEE A


COMPANIES (AUDIT, INVESTIGATION AND COMMUNITY ENTERPRISE)
BILL [LORDS]

NOTE

The Amendments have been marshalled in accordance with the Order of the Committee [14th September].


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

17

Clause     19,     page     23,     line     41,     at beginning insert 'Where there appears to be good reason,'.


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

24

Clause     21,     page     25,     line     24,     leave out 'thinks' and insert 'reasonably believes'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

25

Clause     21,     page     25,     line     24,     after 'thinks', insert 'on reasonable grounds'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

18

Clause     21,     page     25,     line     26,     after 'may', insert ', subject to subsection (3A),'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

26

Clause     21,     page     25,     line     26,     at end insert 'during normal office hours'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

27

Clause     21,     page     25,     line     28,     after 'there', insert 'during normal office hours'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

28

Clause     21,     page     25,     line     28,     leave out 'thinks' and insert 'reasonably believes'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

29

Clause     21,     page     25,     line     28,     after 'necessary', insert 'on reasonable grounds'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

30

Clause     21,     page     25,     line     28,     after 'necessary', insert ', not exceeding one month,'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

31

Clause     21,     page     25,     line     28,     after 'necessary' insert 'not exceeding one month (or such longer periods as may be authorised by the Secretary of State)'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

32

Clause     21,     page     25,     line     29,     at end insert—

    '(2A)   Except when the investigator or inspector reasonably believes that the exercise of his functions under this Part would otherwise be seriously impaired the powers under subsection (2) shall be exercised between the hours of 9 am and 5.30 pm and between Monday and Friday.'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

19

Clause     21,     page     25,     line     32,     after subsection (3) insert—

    '(3A)   Where the relevant premises consist either of premises all parts of which are used for residential purposes or of premises which can only be accessed via premises or parts of premises which are used for residential purposes an inspector or investigator shall not exercise his powers under subsection (2) without a warrant issued under section 453C by a justice of the peace and if such a warrant is issued the inspector's or investigator's powers under subsection (2) shall be limited to his powers under such warrant.'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

20

Clause     21,     page     25,     line     33,     after 'subsection (2),', insert 'subject to the terms of any warrant issued under section 453C'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

33

Clause     21,     page     26,     line     19,     at end insert—

'(c) the grounds for his belief that entry onto the company's premises will and that remaining thereon for a period will be necessary to materially assist him in the exercise of his functions under this Part,'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

21

Clause     21,     page     27,     line     8,     at end add—

    '(2)   After section 453B of that Act insert—

    "453C   Entry into residential premises

    (1)   A justice of the peace may issue a warrant under section 453A(3A) if satisfied on information on oath given by or on behalf of the inspector or investigator authorised under section 453A(3A) that there are reasonable grounds for believing that access to any premises falling within section 453A(3A) will materially assist the inspector or investigator in the exercise of his functions under this Part.

    (2)   A warrant under section 453A(3A) may authorise the inspector or investigator, accompanied by a constable and any persons thought appropriate under section 453A(4) and any other constables—

(a) to enter the premises, and

(b) to remain there for such period as the inspector or investigator thinks necessary, or for such period as the warrant may provide, for the purpose mentioned in subsection 453A(1)(b).

    (3)   A warrant may be issued under section 453A(3A) subject to conditions.

    (4)   Sections 448(5) and 448(9) shall apply to the issue of a warrant under section 453A(3A) as they apply to the issue of a warrant under section 448(1).".'.


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

22

Clause     22,     page     27,     line     10,     leave out '453B' and insert '453C'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

23

Clause     22,     page     27,     line     12,     leave out '453C' and insert '453D'.


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

34

Schedule     2,     page     55,     line     31,     at end insert—

'(d) any person accompanying an inspector or investigator pursuant to section 453A(3A).'.


   

Brian Cotter
Mr Michael Moore

41

Clause     24,     page     28,     line     16,     at end add—

'(c) a charity may become a community interest company.'.

   

Brian Cotter
Mr Michael Moore

42

Clause     24,     page     28,     line     17,     leave out subsection 3.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

35

Clause     24,     page     28,     leave out lines 17 to 18 and insert—

    '(3)   Notwithstanding the purposes for which a community interest company is established it—'.


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

36

Clause     26,     page     29,     line     19,     at end insert 'or a serious procedural error or other material irregularity.'.


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

37

Clause     34,     page     33,     line     35,     at end add—

    '(11)   The Secretary of State shall establish a fund to support the cost of organisations setting up and registering as community interest companies.'.


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

40

Clause     39,     page     36,     line     42,     after 'appears' insert 'on reasonable grounds'.


   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

38

Schedule     7,     page     70,     line     14,     after 'may', insert 'if it appears reasonably necessary for the purposes of the investigation'.

   

Mr Andrew Mitchell
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

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—

'In section 310, in subsection (1) the words "any officer of the company or", and in subsection (3) the words "officer or" (in both places) and the words from "section 144(3)" to "nominee) or".'.


   

Jacqui Smith

1

Clause     65,     page     50,     line     18,     leave out subsection (2).


REMAINING NEW CLAUSES

Funding of director's expenditure on defending proceedings

   

Jacqui Smith

NC2

To move the following Clause:—

'After section 337 of the Companies Act 1985 (c.6) insert—

    "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—

(a) in defending any criminal or civil proceedings, or

(b) in connection with any application under any of the provisions mentioned in subsection (2).

    (2)   The provisions are—

          section 144(3) and (4) (acquisition of shares by innocent nominee), and

          section 727 (general power to grant relief in case of honest and reasonable conduct).

    (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—

(a) in the event of the director being convicted in the proceedings, the date when the conviction becomes final,

(b) in the event of judgment being given against him in the proceedings, the date when the judgment becomes final, or

(c) in the event of the court refusing to grant him relief on the application, the date when the refusal of relief becomes final.

    (5)   For the purposes of subsection (4) a conviction, judgment or refusal of relief becomes final—

(a) if not appealed against, at the end of the period for bringing an appeal, or

(b) if appealed against, at the time when the appeal (or any further appeal) is disposed of.

    (6)   An appeal is disposed of—

(a) if it is determined and the period for bringing any further appeal has ended, or

(b) if it is abandoned or otherwise ceases to have effect.".'.

 
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Prepared 16 Sept 2004