2 Introduction
2. The proposal for the draft Regulatory Reform (Execution
of Deeds and Documents) Order 2004 was laid before the House by
the Department for Constitutional Affairs ("the Department")
on 21July 2004.
3. The proposed Order would introduce a number of
reforms to legislation governing the execution of deeds and documents
by and on behalf of corporations. It would make amendments to
section 74 of the Law of Property Act 1925, section 36A of the
Companies Act 1985 and Section 1 of the Law of Property (Miscellaneous
Provisions) Act 1989 to remove certain restrictions on the powers
of companies and corporations more generally and would remove
inconsistencies between these Acts so that the law would be clarified.
Consequential amendments would also be required to the Powers
of Attorney Act 1971. These changes are intended to allow a greater
common understanding of the requirements of the law: they will
increase certainty amongst businesses, legal practitioners and
others that legal procedures related to the execution of deeds
have been correctly carried out.
4. The proposed Order is intended to give effect
to recommendations made in the Law Commission Report "The
Execution of Deeds and Documents by and on behalf of Bodies Corporate".[1]
The Government's acceptance of recommendations made in that Report
was given in answer to a Parliamentary Question on 27 July 1999.[2]
The proposed Order draws on the provisions of a draft bill appended
to the Law Commission's Report and the Order would give effect
only to changes proposed by the Law Commission (although some
changes recommended in the Report are not part of the current
proposal (e.g. recommended changes to the powers of liquidators
of companies).
5. The House has instructed us to examine the proposal
against the criteria specified in Standing Order No.141 (6) and
then, in the light of that examination, to report whether the
Government should proceed, whether amendments should be made,
or whether the Order should not be made.[3]
6. Our discussion of matters arising from our examination
is set out below. Where a criterion specified in Standing Order
No. 141(6) is not discussed in the report, this indicates that
we have no concerns to raise about that criterion. In the course
of our examination, we requested further information from the
Department about a number of issues relating to the proposal.[4]
The Department's response is reproduced as Appendix B to this
report.
1 Report number 253, published in August 1998.Available
at www.lawcom.gov.uk/files/lc253.pdf Back
2
HC Written Answer 27 July 1999, col. 222 Back
3
Standing Order No. 141(2) Back
4
Letter dated 17 September 2004 from the Committee Specialist to
the Department of Constitutional Affairs. Back
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