Amendments proposed to the Companies (Audit, Investigation and Community Enterprise) - continued House of Commons

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Amendment of Companies Act 1985: limit on auditor's liability (No. 2)

   

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

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
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

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—

    "(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 the sum of£75 million.

    (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
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

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—

"(iii) From entering a contract with its auditors to limit their liability in respect of any negligence, default or breach of duty provided such contract is approved by members in general meeting.".'


Limit on auditor's liability (No. 1)

   

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

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
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

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
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

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
Mr Peter Atkinson
Mrs Gillian Shephard
Mr Ian Taylor

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—

(a) 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; and

(b) 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.'.


Director's Report (Statement of Payment Practice)

   

Brian Cotter
Mr Michael Moore

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'.


ORDER OF THE COMMITTEE [14th SEPTEMBER 2004]

Jacqui Smith That the order in which proceedings in Standing Committee on the Companies (Audit, Investigations and Community Enterprise) Bill [Lords] are to be taken shall be: New Clause 1; New Clause 3; Clauses 1 to 12, Schedule 1; Clauses 13 to 23; Schedule 2; Clauses 24 and 25; Schedule 3; Clause 26; Schedule 4; Clause 27; Schedule 5; Clauses 28 to 31; Schedule 6; Clauses 32 to 40; Schedule 7; Clauses 41 to 62; Schedule 8; Clauses 63 to 65; remaining new Clauses; new Schedules; any other proceedings relating to the Bill.


 
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