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S.C.D.

247

 
 

House of Commons

 
 

Tuesday 20th June 2006

 

Standing Committee Proceedings

 

Standing Committee D

 

Company Law Reform Bill [Lords]


 

[SECOND AND THIRD sittingS]


 

Motion made and Question Proposed,

 

 

Agreed to on division

 

That—

 

(1)  

during proceedings on the Company Law Reform Bill [Lords] the Standing

 

Committee shall (in addition to its first meeting at 9.00 a.m. on Thursday 15th

 

June) meet—

 

(a)  

at 1.00 p.m. on Thursday 15th June;

 

(b)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 20th June;

 

(c)  

at 9.00 a.m. and 1.00 p.m. on Thursday 22nd June;

 

(d)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 27th June;

 

(e)  

at 9.00 a.m. and 1.00 p.m. on Thursday 29nd June;

 

(f)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 4th July;

 

(g)  

at 9.00 a.m. and 1.00 p.m. on Thursday 6th July;

 

(h)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 11th July;

 

(i)  

at 9.00 a.m. and 1.00 p.m. on Thursday 13th July;

 

(2)  

the proceedings shall be taken in the following order: Clauses 1 to 137;

 

Clauses 253 to 361; Clauses 604 to 641; Clauses 676 to 680; Clauses 694 to

 

777; Schedule 4; Clauses 778 to 795; Schedules 5 to 7; Clauses 796 to 806;

 

Schedule 8; Clauses 807 to 812; Clauses 821 to 846; Schedule 10; Clauses

 

847 to 849; Schedule 11; Clauses 850 to 871; Schedule 12; Clauses 872 to

 

881; Schedule 13; Clauses 882 to 893; Schedule 14; Clauses 894 to 901;

 

Schedule 15; Clauses 902 to 919; Clauses 921 to 925; Clauses 139 to 238;

 

Schedule 1; Clauses 239 to 252; Clauses 362 to 529; Clauses 642 to 648;

 

Schedule 2; Clauses 649 to 675; Schedule 3; Clauses 530 to 603; Clauses 681

 

to 693; Clause 138; new Clauses; new Schedules; Clauses 813 and 814;

 

Schedule 9; Clauses 815 to 820; Clause 920; Schedule 16; remaining

 

proceedings on the Bill;

 

(3)  

the proceedings shall (so far as not previously concluded) be brought to a

 

conclusion at 5.00 p.m. on Thursday 13th July.—(Margaret Hodge)

 



 
 

S.C.D.  Standing Committee Proceedings: 20th June 2006            

248

 

Company Law Reform Bill[ [], continued

 
 

Clauses 1 to 7 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not selected  45

 

Clause  8,  page  4,  line  7,  leave out subsection (2) and insert—

 

‘(2)    

In the case of private companies and small companies the memorandum must be

 

in the prescribed form and must be authenticated by each subscriber.

 

(3)    

For companies other than private companies the form of the memorandum shall

 

be as prescribed by regulations made under this Act.’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not selected  1

 

Clause  8,  page  4,  line  8,  at end insert—

 

‘(3)    

A company need not have a memorandum of association, in which event the

 

company’s articles of association shall state that the subscribers—

 

(a)    

wish to form a company under this Act; and

 

(b)    

agree to become members of the company and in the case of a company

 

that is to have a share capital, to take at least one share each.’.

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  2

 

Clause  9,  page  4,  line  16,  leave out paragraph (b) and insert—

 

‘(b)    

the address in the United Kingdom where the registered office is to be

 

situated,’.

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  3

 

Clause  10,  page  5,  line  2,  leave out subsection (1) and insert—

 

‘(1)    

The articles of association of a company on its incorporation shall contain a

 

statement, which must comply with this section.’.


 
 

S.C.D.  Standing Committee Proceedings: 20th June 2006            

249

 

Company Law Reform Bill[ [], continued

 
 

Clause Agreed to.

 


 

Margaret Hodge

 

Agreed to  75

 

Clause  11,  page  5,  line  30,  leave out from ‘contain’ to end of line 31 and insert

 

‘such information as may be prescribed for the purpose of identifying the subscribers to

 

the memorandum of association’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not moved  46

 

Clause  11,  page  5,  line  33,  leave out ‘one year’ and insert ‘two years’.

 

Clause, as amended, Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  4

 

Clause  12,  page  6,  line  1,  leave out from beginning to second ‘the’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  47

 

Clause  12,  page  6,  line  1,  leave out ‘to be a public company’ and insert ‘required or

 

proposes to have a company secretary’.

 

Margaret Hodge

 

Agreed to  76

 

Clause  12,  page  6,  line  3,  at end insert—

 

‘( )    

any person who is to be appointed as an authorised signatory of the

 

company.’.

 

Margaret Hodge

 

Agreed to  77

 

Clause  12,  page  6,  line  4,  leave out from ‘stated’ to end of line 7 and insert ‘—

 

( )    

in the case of a director, in the company’s register of directors and

 

register of directors’ residential addresses (see sections 147 to 151);

 

( )    

in the case of a secretary of a public company, in the company’s register

 

of secretaries (see sections 260 to 262);

 

( )    

in the case of a person appointed as an authorised signatory, in the

 

company’s register of authorised signatories (see sections (Register of

 

authorised signatories) to (Particulars to be registered: power to make

 

regulations).’.


 
 

S.C.D.  Standing Committee Proceedings: 20th June 2006            

250

 

Company Law Reform Bill[ [], continued

 
 

Margaret Hodge

 

Agreed to  78

 

Clause  12,  page  6,  line  9,  after ‘secretaries,’ insert ‘or as an authorised signatory,’.

 

Clause, as amended, Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  5

 

Clause  13,  page  6,  line  18,  at end insert—

 

‘(3)    

The statement of compliance shall be made by way of statutory declaration.’.

 

Clause Agreed to.

 

Clause 14 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  6

 

Clause  15,  page  6,  line  37,  leave out subsection (3).

 

Clause Agreed to.

 


 

Margaret Hodge

 

Agreed to  79

 

Clause  16,  page  7,  line  17,  at end insert ‘, or

 

(c)    

as an authorised signatory,’.

 

Clause, as amended, Agreed to.

 

Clauses 17 to 20 Agreed to.

 


 

Margaret Hodge

 

Agreed to  80

 

Clause  21,  page  8,  line  28,  leave out ‘alter’ and insert ‘amend’.


 
 

S.C.D.  Standing Committee Proceedings: 20th June 2006            

251

 

Company Law Reform Bill[ [], continued

 
 

Clause, as amended, Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not selected  7

 

Clause  22,  page  9,  line  2,  leave out subsection (1).

 

Margaret Hodge

 

Agreed to on division  81

 

Clause  22,  page  9,  line  3,  leave out paragraph (a).

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  8

 

Clause  22,  page  9,  line  3,  leave out from ‘repealed’ to end of line 6.

 

Margaret Hodge

 

Agreed to  82

 

Clause  22,  page  9,  line  4,  leave out ‘altered’ and insert ‘amended’.

 

Margaret Hodge

 

Agreed to  83

 

Clause  22,  page  9,  line  11,  at end insert—

 

‘( )    

Provision for entrenchment does not prevent amendment of the company’s

 

articles by agreement of all the members of the company.’.

 

Clause, as amended, Agreed to on division.

 


 

Margaret Hodge

 

Agreed to  84

 

Clause  23,  page  9,  line  16,  leave out ‘altered’ and insert ‘amended’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  9

 

Clause  23,  page  9,  line  18,  leave out subsection (2).

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  48

 

Clause  23,  page  9,  line  22,  leave out subsections (3) and (4).


 
 

S.C.D.  Standing Committee Proceedings: 20th June 2006            

252

 

Company Law Reform Bill[ [], continued

 
 

Clause, as amended, Agreed to.

 


 

Margaret Hodge

 

Agreed to  85

 

Clause  24,  page  9,  line  27,  leave out ‘alters’ and insert ‘amends’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  10

 

Clause  24,  page  9,  line  28,  after ‘articles’, insert ‘by unanimous resolution’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  11

 

Clause  24,  page  9,  line  28,  after ‘articles’, insert ‘by unanimous resolution less one

 

vote’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  12

 

Clause  24,  page  9,  line  28,  after ‘articles’, insert ‘by a resolution of at least 90% of

 

its members’.

 

Margaret Hodge

 

Agreed to  86

 

Clause  24,  page  9,  line  32,  leave out ‘alteration’ and insert ‘amendment’.

 

Clause, as amended, Agreed to.

 

Clauses 25 and 26 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  49

 

Clause  27,  page  10,  line  31,  leave out ‘200’ and insert ‘1,000’.

 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Not called  50

 

Clause  27,  page  10,  line  31,  at end insert ‘and, for continued contravention, a daily

 

default fine of £100’.


 
 

S.C.D.  Standing Committee Proceedings: 20th June 2006            

253

 

Company Law Reform Bill[ [], continued

 
 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  13

 

Clause  28,  page  11,  line  7,  at end insert—

 

‘(4)    

If there is a conflict between a provision which immediately before the

 

commencement of this Part was contained in a company’s memorandum of

 

association and a provision contained in that company’s articles of association,

 

the former shall prevail.’.

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  14

 

Clause  29,  page  11,  line  42,  at end insert—

 

‘(3)    

Reference to a resolution in subsection (1) above, shall not include any document

 

referred to in such a resolution.’.

 

Clause Agreed to.

 


 

David Howarth

 

Lorely Burt

 

Mark Hunter

 

Not called  182

 

Clause  30,  page  12,  line  16,  at end add—

 

‘(5)    

Resolutions or agreements under section 29(1)(b) to (d) shall not be enforceable

 

unless recorded by the registrar.’.

 

Clause Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Crispin Blunt

 

James Brokenshire

 

Withdrawn  15

 

Clause  31,  page  12,  line  19,  after ‘a’, insert ‘public’.


 
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