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S.C.D.

323

 
 

House of Commons

 
 

Tuesday 11th July 2006

 

Standing Committee Proceedings

 

Standing Committee D

 

Company Law Reform Bill [Lords]


 

[FOURTEENTH AND fifteenTH sittingS]


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  40

 

Clause  158,  page  70,  line  7,  after ‘faith’, insert ‘and as appropriate for the size of

 

the company’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  39

 

Clause  158,  page  70,  line  9,  leave out from ‘whole,’ to end of line and insert

 

‘having regard, insofar as he considers it relevant, to the following factors (amongst

 

others)—’.

 

Jim Cousins

 

Patrick Hall

 

Not called  300

 

Clause  158,  page  70,  line  9,  leave out from ‘so’ to end of line 18 and insert ‘must

 

endeavour to—

 

(a)    

have regard to the likely consequences of any decision in the long term,

 

(b)    

promote the interests of the company’s employees,

 

(c)    

foster the company’s business relationships with suppliers, customers

 

and others,

 

(d)    

minimise any adverse impact of the company’s operations on the

 

community and the environment,

 

(e)    

maintain a reputation for high standards of business conduct, and

 

(f)    

act fairly as between members of the company.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  166

 

Clause  158,  page  70,  line  9,  after ‘to’, insert ‘what he considers, in good faith, to

 

be’.


 
 

S.C.D.  Standing Committee Proceedings: 11th July 2006            

324

 

Company Law Reform Bill[ [], continued

 
 

Mr Quentin Davis

 

Not called  297

 

Clause  158,  page  70,  line  14,  leave out ‘and the environment’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  41

 

Clause  158,  page  70,  line  18,  at end insert ‘, and

 

(g)    

all other common law duties of directors.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  42

 

Clause  158,  page  70,  line  25,  at end insert—

 

‘(4)    

The duties implied by this section shall not apply to small and medium sized

 

companies.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  43

 

Clause  158,  page  70,  line  25,  at end insert—

 

‘(4)    

None of the duties set out in or implied by this section shall take priority over any

 

of the other duties.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  165

 

Clause  158,  page  70,  line  25,  at end insert—

 

‘(4)    

The duty to promote the success of the company shall be paramount.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  417

 

Clause  158,  page  70,  line  25,  at end add—

 

‘(4)    

The Secretary of State must issue a non-statutory set of guidelines concerning the

 

application of this section, which must be updated annually.’.

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not selected  271

 

Clause  159,  page  70,  line  27,  leave out subsection (1).


 
 

S.C.D.  Standing Committee Proceedings: 11th July 2006            

325

 

Company Law Reform Bill[ [], continued

 
 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  272

 

Clause  160,  page  70,  line  34,  leave out subsection (2).

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  256

 

Clause  161,  page  71,  line  2,  after ‘must’, insert ‘take all reasonable steps to’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  323

 

Clause  161,  page  71,  line  3,  leave out ‘, or possibly may conflict,’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  322

 

Clause  161,  page  71,  line  4,  at end insert ‘at the time when he seeks authorisation

 

pursuant to subsection (5) below.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Negatived on division  257

 

Clause  161,  page  71,  line  11,  leave out paragraph (a) and insert—

 

‘(a)    

if the director reasonably and in good faith believes the situation is not

 

likely to give rise to a conflict of interest; or’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  255

 

Clause  161,  page  71,  line  21,  at end insert—

 

‘( )    

The authorisation may, in either case, be given by them (unconditionally, or

 

subject to such conditions or limitations as they may specify), either in relation to

 

a particular matter or generally, following receipt by them of a general notice in

 

accordance with section 168.’.


 
 

S.C.D.  Standing Committee Proceedings: 11th July 2006            

326

 

Company Law Reform Bill[ [], continued

 
 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  167

 

Clause  161,  page  71,  line  29,  at end add—

 

‘(8)    

Where a conflict or potential conflict arises because of multiple directorships, the

 

duty is not infringed if the director ensures there is no disadvantage to the

 

interests of the company.’.

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  155

 

Clause  162,  page  71,  line  31,  after ‘benefit’, insert ‘of more than £1,000’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  154

 

Clause  162,  page  71,  line  44,  at end add—

 

‘(6)    

This duty is not infringed if the acceptance of the benefit is approved by the board

 

of the company.’.

 

Clause Agreed to.

 

Clause 163 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not selected  273

 

Clause  164,  page  72,  line  32,  leave out subsection (1).

 

Clause Agreed to.

 

Clauses 165 and 166 Agreed to.

 


 

Margaret Hodge

 

Agreed to  301

 

Clause  167,  page  74,  line  17,  leave out ‘or Northern Ireland’.

 

Clause, as amended, Agreed to.


 
 

S.C.D.  Standing Committee Proceedings: 11th July 2006            

327

 

Company Law Reform Bill[ [], continued

 
 

Clauses 168 and 169 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  274

 

Clause  170,  page  75,  line  21,  at end insert ‘provided that, if the company has a

 

secretary, the notice need only be sent to the company secretary.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  275

 

Clause  170,  page  75,  line  25,  after ‘post’ insert ‘or by facsimile’.

 

Clause Agreed to.

 

Clauses 171 to 173 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not moved  276

 

Clause  174,  page  77,  line  46,  at end add—

 

‘(8)    

Any accidental failure in the procedures to submit a memorandum under the

 

provisions of subsection (5) shall not invalidate the approval of the guaranteed

 

term.’.

 

Clause Agreed to.

 

Clauses 175 to 178 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  426

 

Clause  179    ,  page  79,  line  32,  at end insert ‘, or

 

‘(c)    

that is in receivership.’.

 

Clause Agreed to.

 

Clauses 180 to 190 Agreed to.

 



 
 

S.C.D.  Standing Committee Proceedings: 11th July 2006            

328

 

Company Law Reform Bill[ [], continued

 
 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  277

 

Clause  191,  page  86,  line  19,  leave out ‘£10,000’ and insert ‘£50,000’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  278

 

Clause  191,  page  86,  line  26,  leave out ‘£15,000’ and insert ‘£50,000’.

 

Clause Agreed to.

 

Clauses 192 to 215 Agreed to.

 


 

Margaret Hodge

 

Agreed to  302

 

Clause  216,  page  98,  line  32,  at end insert—

 

‘( )    

section (qualifying pension scheme indemnity provision) (qualifying

 

pension scheme indemnity provision).’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  206

 

Clause  216,  page  98,  line  36,  at end add—

 

‘(5)    

This section does not apply to a provision made by a company (“Company A”) in

 

respect of a director of an associated company of Company A—

 

(a)    

if the associated company is a wholly owned subsidiary of Company A,

 

or

 

(b)    

to the extent that the associated company is acting or, otherwise than in

 

bad faith, purporting to act as a trustee of an occupational pension

 

scheme.’.

 

Clause, as amended, Agreed to.

 

[Adjourned till Thursday at 9.00 a.m.

 


 

CORRIGENDUM

 

In Standing Committee Proceedings for Thursday 6th July 2006, page 319, after the

 

entries relating to Clause 150, there should be inserted—

 


 

Clause 151 agreed to”.


 
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