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S.C.D.

329

 
 

House of Commons

 
 

Thursday 13th July 2006

 

Standing Committee Proceedings

 

Standing Committee D

 

Company Law Reform Bill [Lords]


 

[SIXTEENTH AND SEVENteenTH sittingS]


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not selected  427

 

Clause  217,  page  99,  line  2,  at end add ‘or prohibit a company from meeting the

 

cost of any excess number of policy of directors’ and officers’ insurance permitted to be

 

purchased by the company under this section provided that such excess is not more than

 

£5,000.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  460

 

Clause  217,  page  99,  line  2,  at end add—

 

‘( )    

The cost of any excess under an insurance policy permitted to be purchased under

 

this section may be paid for by a company or associated company, provided that

 

it does not exceed £5,000’.

 

Clause Agreed to.

 

Clause 218 Agreed to.

 


 

Margaret Hodge

 

Agreed to  303

 

Clause  219,  page  99,  line  43,  leave out from ‘disclosure’ to end of line 44 and insert

 

‘in the directors’ report of—

 

(a)    

qualifying third party indemnity provision, and

 

(b)    

qualifying pension scheme indemnity provision.

 

    

Such provision is referred to in this section as “qualifying indemnity provision”.’.


 
 

S.C.D.  Standing Committee Proceedings: 13th July 2006            

330

 

Company Law Reform Bill[ [], continued

 
 

Margaret Hodge

 

Agreed to  304

 

Clause  219,  page  100,  line  1,  leave out ‘third party’.

 

Margaret Hodge

 

Agreed to  305

 

Clause  219,  page  100,  line  9,  leave out ‘third party’.

 

Clause, as amended, Agreed to.

 


 

Margaret Hodge

 

Agreed to  306

 

Clause  220,  page  100,  line  19,  leave out ‘third party’.

 

Margaret Hodge

 

Agreed to  307

 

Clause  220,  page  100,  line  27,  leave out ‘third party’.

 

Margaret Hodge

 

Agreed to  308

 

Clause  220,  page  101,  line  5,  leave out ‘third party’.

 

Margaret Hodge

 

Agreed to  309

 

Clause  220,  page  101,  line  6,  at end insert—

 

‘( )    

In this section “qualifying indemnity provision” means—

 

(a)    

qualifying third party indemnity provision, and

 

(b)    

qualifying pension scheme indemnity provision.’.

 

Clause, as amended, Agreed to.

 

Clause 221 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  423

 

Clause  222,  page  101,  line  34,  leave out subsections (3) and (4).

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  424

 

Clause  222,  page  101,  line  35,  leave out ‘nor any member connected with him’.

 

Clause Agreed to.


 
 

S.C.D.  Standing Committee Proceedings: 13th July 2006            

331

 

Company Law Reform Bill[ [], continued

 
 

Clauses 223 and 224 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Negatived on division  258

 

Clause  225,  page  103,  line  7,  leave out paragraph (b).

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  279

 

Clause  225,  page  103,  line  8,  at end insert ‘save as otherwise provided for in this

 

Act or regulations made pursuant to this Act.’.

 

Clause Agreed to.

 

Clauses 226 to 238 Agreed to.

 

Schedule 1 Agreed to.

 

Clauses 239 to 242 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  485

 

Clause  243,  page  110,  line  22,  leave out paragraph (b).

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  494

 

Clause  243,  page  110,  line  26,  leave out ‘or proposed’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  487

 

Clause  243,  page  110,  line  29,  leave out ‘or another person (or both)’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  488

 

Clause  243,  page  110,  line  30,  leave out subsection (4).


 
 

S.C.D.  Standing Committee Proceedings: 13th July 2006            

332

 

Company Law Reform Bill[ [], continued

 
 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Negatived on division  495

 

Clause  243,  page  110,  line  38,  at end add—

 

‘(6)    

A derivative claim under this Chapter may only be brought if the directors have

 

been requested by a member of the company to bring a claim in respect of an act

 

or omission specified in subsection (3) and have not agreed to the request after

 

the expiry of a reasonable period from service of the request.’.

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  489

 

Clause  244,  page  111,  line  2,  leave out subsection (1) and insert—

 

‘(1)    

A member of a company who wishes to bring a derivative claim under this

 

Chapter must receive permission (in Northern Ireland, leave) from the court

 

before proceedings are issued.’.

 

Clause Agreed to.

 

Clause 245 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  490

 

Clause  246,  page  112,  line  13,  after ‘company’, insert ‘in general meeting’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  492

 

Clause  246,  page  112,  line  13,  after ‘occurred’, insert ‘, save in circumstances

 

where it is clear that such decision was one that no reasonable board could have reached

 

in which event such authority shall require to be approved in general meeting’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  491

 

Clause  246,  page  112,  line  14,  after ‘company’, insert ‘in general meeting’.


 
 

S.C.D.  Standing Committee Proceedings: 13th July 2006            

333

 

Company Law Reform Bill[ [], continued

 
 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  493

 

Clause  246,  page  112,  line  14,  after ‘occurred’, insert ‘, save in circumstances

 

where it is clear that such decision was one that no reasonable board could have reached

 

in which event such authority shall require to be approved in general meeting’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Negatived on division  486

 

Clause  246,  page  112,  line  14,  at end insert ‘, or

 

(d)    

that the directors have decided not to pursue the claim, unless the court

 

considers that there is a substantial risk that in reaching their decision

 

they acted in breach of their duties to the company, or

 

(e)    

that the claim is one which the company in general meeting could validly

 

decide not to pursue, unless the court considers that there is a substantial

 

risk that a decision not to pursue the claim would only be taken as a result

 

of votes cast by members with a personal interest, direct or indirect, in the

 

decision, or

 

(f)    

that pursuing the claim would not be in the interests of the company.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  500

 

Clause  246,  page  112,  line  14,  at end insert ‘, or

 

(d)    

that the directors have decided not to pursue the claim, unless the court

 

considers that there is a substantial risk that that transaction constitutes a

 

fraud on a minority of members of the company, or

 

(e)    

that the claim is one which the company in general meeting could validly

 

decide not to pursue, unless the court considers that there is a substantial

 

risk that a decision not to pursue the claim would only be taken due to the

 

majority of the shares being in control of those with a direct or indirect

 

interest in the transaction.’.

 

Clause Agreed to.

 

Clauses 247 to 252, 362 and 363 Agreed to.

 


 

Margaret Hodge

 

Agreed to  433

 

Clause  364,  page  162,  line  8,  leave out subsections (1) and (2) and insert—

 

‘(1)    

A company qualifies as small in relation to its first financial year if the qualifying

 

conditions are met in that year.

 

(2)    

A company qualifies as small in relation to a subsequent financial year—

 

(a)    

if the qualifying conditions are met in that year and the preceding

 

financial year;

 

(b)    

if the qualifying conditions are met in that year and the company

 

qualified as small in relation to the preceding financial year;


 
 

S.C.D.  Standing Committee Proceedings: 13th July 2006            

334

 

Company Law Reform Bill[ [], continued

 
 

(c)    

if the qualifying conditions were met in the preceding financial year and

 

the company qualified as small in relation to that year.’.

 

Clause, as amended, Agreed to.

 


 

Margaret Hodge

 

Agreed to  434

 

Clause  365,  page  163,  line  4,  leave out subsections (2) and (3) and insert—

 

‘(2)    

A group qualifies as small in relation to the parent company’s first financial year

 

if the qualifying conditions are met in that year.

 

(3)    

A group qualifies as small in relation to a subsequent financial year of the parent

 

company—

 

(a)    

if the qualifying conditions are met in that year and the preceding

 

financial year;

 

(b)    

if the qualifying conditions are met in that year and the group qualified

 

as small in relation to the preceding financial year;

 

(c)    

if the qualifying conditions were met in the preceding financial year and

 

the group qualified as small in relation to that year.’.

 

Clause, as amended, Agreed to.

 

Clauses 366 to 374 Agreed to.

 


 

Margaret Hodge

 

Agreed to  435

 

Clause  375,  page  169,  line  38,  leave out from third ‘the’ to end of line 40 and insert

 

‘undertakings included in the consolidation as a whole, so far as concerns members of the

 

company’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

Justine Greening

 

Withdrawn  498

 

Clause  375,  page  169,  line  43,  at end add—

 

‘(3)    

If compliance with the regulations and any other provision made by or under this

 

Act as to the matters to be included in a company’s individual accounts, or in

 

notes to those accounts under subsection (1), would not be sufficient to give a true

 

and fair view, the necessary additional information must be given in the accounts

 

or in a note to them.’.

 

Clause, as amended, Agreed to.

 

Clauses 376 to 378 Agreed to.

 



 
 

S.C.D.  Standing Committee Proceedings: 13th July 2006            

335

 

Company Law Reform Bill[ [], continued

 
 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

Justine Greening

 

Not called  499

 

Clause  379,  page  171,  line  18,  at end add—

 

‘(2)    

If compliance with the regulations and any other provision made by or under this

 

Act as to the matters to be included in a company’s IAS individual accounts, or

 

in notes to those accounts under subsection (1), would not be sufficient to give a

 

true and fair view, the necessary additional information must be given in the

 

accounts or in a note to them.’.

 

Clause Agreed to.

 


 

Margaret Hodge

 

Agreed to  436

 

Clause  380,  page  171,  line  23,  leave out from ‘prepare’ to end of line 25 and insert

 

‘group accounts for the year’.

 

Clause, as amended, Agreed to.

 


 

Margaret Hodge

 

Agreed to  437

 

Clause  381,  page  171,  line  32,  leave out ‘consolidated accounts for the group’ and

 

insert ‘group accounts’.

 

Margaret Hodge

 

Agreed to  438

 

Clause  381,  page  172,  line  1,  leave out subsection (5).

 

Clause, as amended, Agreed to.

 

Clause 382 Agreed to.

 


 

Margaret Hodge

 

Agreed to  439

 

Clause  383,  page  174,  line  7,  leave out ‘consolidated’ and insert ‘group’.

 

Clause, as amended, Agreed to.

 

Clauses 384 to 390 Agreed to.

 



 
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