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Question put and agreed to.
Bill ordered to be brought in by Mr. Ivan Henderson, Mr. Stephen McCabe, Mr. Tony Clarke, Mr. Anthony D. Wright, Mr. Stephen Hepburn, Ms Dari Taylor, Dr. Howard Stoate, Bob Russell, Mr. Kevan Jones, Andrew George, Mr. John Bercow and Dr. Doug Naysmith.
Mr. Ivan Henderson accordingly presented a Bill to exempt those who suffer from congenital heart disease from prescription charges. And the same was read the First time; and ordered to be read a Second time on Friday 5 November, and to be printed [Bill 1641].
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Orders of the Day
Companies (Audit, Investigations and Community Enterprise) Bill [Lords]
As amended in the Standing Committee, considered.
New Clause 1
'(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 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 provided such contract is approved by members in general meeting".'.—[Mr. Andrew Mitchell.]
Brought up, and read the First time.
12.40 pm
Mr. Andrew Mitchell (Sutton Coldfield): I beg to move, That the clause be read a Second time.
Mr. Speaker : With this it will be convenient to discuss the following:
New clause 2—Amendment of Companies Act 1985: limit on auditor's liability (No.2)—
'(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".'.
New clause 3—Amendment of Companies Act 1985: limit on auditor's liability (No.3)—
'(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 the sum of £75 million.
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(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".'.
New clause 4—Amendment of Companies Act 1985: limit on auditor's liability (No.4)—
'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.".'.
New clause 5—Limit on auditor's liability (No.1)—
'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.'.
New clause 6—Limit on auditor's liability (No.2)—
'(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.'.
New clause 7—Limit on auditor's liability (No.3)—
'(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.'.
New clause 8—Limit on auditor's liability (No.4)—
'(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.'.
New clause 10—Amendment of the Companies Act 1985: Exemption, indemnity and limits on auditor's liability—
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