Appendix A
Letter from the Committee Specialist to the Department
for Constitutional Affairs
Proposal for the Regulatory Reform (Execution
of Deeds and Documents) Order 2004: request for information
Thank you for the helpful presentation made by officials
from your Department on 14 September on the subject of this RRO
proposal.
The Committee considered the proposal at its subsequent
meeting and resolved to seek your further comments on a number
of points. The issues which concern the Committee are set out
below, under the relevant categories for consideration in the
Regulatory Reform Act and the Committee's Standing Order.
Whether the proposal has the effect of continuing
any necessary protection as required in Section 3(1)(a) of the
Regulatory Reform Act 2001 (S.O. No 141(6)(c))
Whether the proposal appears to be incompatible
with any obligation resulting from membership of the European
Union (S.O. No 141 (6)(i)
Q 1 Please indicate whether the Department
considers that the Companies Act 1985 permits the execution of
a document by the application of an electronic signature.
Q 2 Please indicate whether the proposed amendments
to the Law of Property Act 1925 in paragraphs 3 and 4 of Schedule
1 to the proposed Order requiring that witnesses to the signature
of deeds and other instruments shall also formally attest the
signature would have the effect of creating any obstacle to the
witnessing of such deeds remotely by persons using electronic
conferencing equipment, and whether any such obstacle would contravene
the EU directive on E-Commerce.
Q 3 Please indicate whether the proposed requirement
in paragraph 10 of Schedule 1 to the proposed Order that directors
and secretaries of more than one company which is party to a given
document must sign that document separately for each company on
whose behalf they act creates any impediment to the execution
of documents by means of electronic signature.
Other matters arising from the Committee's
consideration of the proposal (S.O. 141(5))
The Committee notes that the proposal applies to
England and Wales for the reason that the legislative provisions
to be reformed only apply to this jurisdiction, and that the Department
decided to exclude from the proposed Order those elements of the
Law Commission's recommendations which would affect the law of
the United Kingdom as a whole.
Q 4 Please indicate i) whether the Department
considers there are any material differences in the relevant legal
requirements and practices in respect of the execution of deeds
and documents between the various United Kingdom jurisdictions;
and ii) whether, and in what respects, the effect of the proposed
Regulatory Reform Order would be to bring about a convergence
in the legal regimes for the execution of deeds and documents
by corporations in England and Wales, Scotland and Northern Ireland.
Q 5 Please indicate whether the Government
has any plans for additional legal reforms to these areas of the
law in Scotland and Northern Ireland and, if it does, what mechanism
it is intended to use to give effect to such reforms.
Q 6 Please indicate what plans if any the
Department has for the implementation of those elements of the
Law Commission's recommendations which address the powers of liquidators
throughout the United Kingdom under the Insolvency Act 1986.
The Committee understands that the proposed Regulatory
Reform Order would have the effect of making reforms to the legislation
governing the execution of deeds and document by corporations
and by companies registered under the Companies Act 1985. Where
separate and specific statutory provisions establish execution
regimes for particular forms of corporation, it appears that these
arrangements will remain unaffected.
Q 7 Please indicate whether the Department's
proposal will have the effect of revising execution requirements
which pertain to corporations which are co-operatives or are other
types of mutual corporation.
I would be grateful to receive your response to these
questions, together with any additional information which the
Department believes would be helpful to the Committee not later
than Friday, 1 October.
17 September 2004
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