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Report Stage Proceedings: 17th October 2006              

862

 

Companies Bill[ [], continued

 
 

(b)    

is a wholly-owned subsidiary of another body corporate.’.

 


 

Loans or quasi-loans to persons connected with directors: requirement of members’

 

approval

 

Mr Secretary Darling

 

Added  NC74

 

To move the following Clause:—

 

‘(1)    

This section applies to a company if it is—

 

(a)    

a public company, or

 

(b)    

a company associated with a public company.

 

(2)    

A company to which this section applies may not—

 

(a)    

make a loan or quasi-loan to a person connected with a director of the

 

company or of its holding company, or

 

(b)    

give a guarantee or provide security in connection with a loan or quasi-

 

loan made by any person to a person connected with such a director,

 

    

unless the transaction has been approved by a resolution of the members of the

 

company.

 

(3)    

If the connected person is a person connected with a director of the company’s

 

holding company, the transaction must also have been approved by a resolution

 

of the members of the holding company.

 

(4)    

A resolution approving a transaction to which this section applies must not be

 

passed unless a memorandum setting out the matters mentioned in subsection (5)

 

is made available to members—

 

(a)    

in the case of a written resolution, by being sent or submitted to every

 

eligible member at or before the time at which the proposed resolution is

 

sent or submitted to him;

 

(b)    

in the case of a resolution at a meeting, by being made available for

 

inspection by members of the company both—

 

(i)    

at the company’s registered office for not less than 15 days

 

ending with the date of the meeting, and

 

(ii)    

at the meeting itself.

 

(5)    

The matters to be disclosed are—

 

(a)    

the nature of the transaction,

 

(b)    

the amount of the loan or quasi-loan and the purpose for which it is

 

required, and

 

(c)    

the extent of the company’s liability under any transaction connected

 

with the loan or quasi-loan.

 

(6)    

No approval is required under this section on the part of the members of a body

 

corporate that—

 

(a)    

is not a UK-registered company, or

 

(b)    

is a wholly-owned subsidiary of another body corporate.’.

 



 
 

Report Stage Proceedings: 17th October 2006              

863

 

Companies Bill[ [], continued

 
 

AMENDMENTS TO CHAPTER 1 AND CHAPTERS 3 TO 9 OF PART 10

 

Jim Cousins

 

Mr Austin Mitchell

 

John McDonnell

 

Withdrawn  761

 

Page  71,  line  10  [Clause  155],  at end insert ‘and domiciled in the United

 

Kingdom’.

 

Jim Cousins

 

Mr Austin Mitchell

 

John McDonnell

 

Not called  762

 

Page  71,  line  11  [Clause  155],  leave out subsection (2).

 


 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  385

 

Page  72,  line  8,  leave out Clause 157.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  386

 

Page  72,  line  18  [Clause  157],  leave out subsection (5).

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  387

 

Page  72  [Clause  158],  leave out lines 30 and 31.

 



 
 

Report Stage Proceedings: 17th October 2006              

864

 

Companies Bill[ [], continued

 
 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  388

 

Page  73,  line  12  [Clause  159],  leave out ‘ceases’ and insert ‘shall not cease’.

 


 

Mr Secretary Darling

 

Agreed to  255

 

Page  74,  line  6  [Clause  162],  leave out from ‘company’ to end of line 7 and

 

insert—

 

‘(2A)    

The register must be kept available for inspection—

 

(a)    

at the company’s registered office, or

 

(b)    

at a place specified in regulations under section (Regulations about

 

where certain company records to be kept available for inspection).’.

 

Mr Secretary Darling

 

Agreed to  256

 

Page  74,  line  7  [Clause  162],  at end insert—

 

‘(2B)    

The company must give notice to the registrar—

 

(a)    

of the place at which the register is kept available for inspection, and

 

(b)    

of any change in that place,

 

    

unless it has at all times been kept at the company’s registered office.’.

 

Mr Secretary Darling

 

Agreed to  257

 

Page  74,  line  11  [Clause  162],  leave out ‘or (2)’ and insert ‘, (2) or (2A) or if

 

default is made for 14 days in complying with subsection (2B)’.

 

Mr Secretary Darling

 

Agreed to  258

 

Page  74,  line  12  [Clause  162],  leave out ‘this section’ and insert ‘subsection (3)’.

 

Mr Secretary Darling

 

Agreed to  715

 

Page  74,  line  14  [Clause  162],  at end insert—

 

    

‘For this purpose a shadow director is treated as an officer of the company.’.

 


 

Mr Secretary Darling

 

Agreed to  716

 

Page  75,  line  38  [Clause  165],  at end insert—


 
 

Report Stage Proceedings: 17th October 2006              

865

 

Companies Bill[ [], continued

 
 

    

‘For this purpose a shadow director is treated as an officer of the company.’.

 


 

Mr Secretary Darling

 

Agreed to  770

 

Page  76,  line  15  [Clause  167],  leave out from ‘from’ to ‘any’ in line 17 and

 

insert—

 

‘(a)    

a person becoming or ceasing to be a director, or

 

(b)    

the occurrence of’.

 

Mr Secretary Darling

 

Agreed to  717

 

Page  76,  line  41,  leave out Clause 168.

 


 

Jim Cousins

 

Mr Austin Mitchell

 

John McDonnell

 

Not selected  755

 

Page  85,  line  32  [Clause  189],  leave out ‘of Members’.

 

Jim Cousins

 

Mr Austin Mitchell

 

John McDonnell

 

Not selected  756

 

Page  85,  line  34  [Clause  189],  leave out ‘members”’.

 


 

Jim Cousins

 

Mr Austin Mitchell

 

John McDonnell

 

Not called  757

 

Page  86,  line  4  [Clause  189],  at end insert—

 

‘(2A)    

A company may not agree to such a provision unless it has consulted its

 

employees.’.

 

Mr Secretary Darling

 

Agreed to  488

 

Page  86,  line  33  [Clause  189],  leave out subsection (6) and insert—

 

‘(6)    

No approval is required under this section on the part of the members of a body

 

corporate that—

 

(a)    

is not a UK-registered company, or

 

(b)    

is a wholly-owned subsidiary of another body corporate.’.

 



 
 

Report Stage Proceedings: 17th October 2006              

866

 

Companies Bill[ [], continued

 
 

Mr Secretary Darling

 

Agreed to  591

 

Page  87,  line  17  [Clause  191],  after ‘company’ insert ‘or be conditional on such

 

approval being obtained’.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  19

 

Page  87,  line  17  [Clause  191],  at end insert ‘or must be conditional on such

 

approval being obtained’.

 

Mr Secretary Darling

 

Agreed to  489

 

Page  87,  line  20  [Clause  191],  leave out subsection (4) and insert—

 

‘(4)    

No approval is required under this section on the part of the members of a body

 

corporate that—

 

(a)    

is not a UK-registered company, or

 

(b)    

is a wholly-owned subsidiary of another body corporate.’.

 


 

Mr Secretary Darling

 

Agreed to  592

 

Page  90,  line  14,  leave out Clause 198.

 


 

Mr Secretary Darling

 

Agreed to  593

 

Page  91,  line  22  [Clause  200],  leave out ‘A company’ and insert—

 

‘(1)    

This section applies to a company if it is—

 

(a)    

a public company, or

 

(b)    

a company associated with a public company.

 

(2)    

A company to which this section applies’.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  405

 

Page  91,  line  22  [Clause  200],   after ‘A’, insert, ‘relevant’.

 



 
 

Report Stage Proceedings: 17th October 2006              

867

 

Companies Bill[ [], continued

 
 

Mr Secretary Darling

 

Agreed to  490

 

Page  92,  line  7  [Clause  200],  leave out subsection (5) and insert—

 

‘(5)    

No approval is required under this section on the part of the members of a body

 

corporate that—

 

(a)    

is not a UK-registered company, or

 

(b)    

is a wholly-owned subsidiary of another body corporate.’.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  406

 

Page  92,  line  14   [Clause  200],   at end insert—

 

‘(6)    

“Relevant company” means a company which—

 

(a)    

is a public company, or

 

(b)    

is a subsidiary of a public company, or

 

(c)    

is a subsidiary of a company which has another subsidiary a public

 

company, or

 

(d)    

has a subsidiary which is a public company.’.

 

Mr Secretary Darling

 

Agreed to  594

 

Page  92,  line  35  [Clause  202],  leave out ‘198’ and insert ‘(Loans to directors:

 

requirement of members’ approval), (Quasi-loans to directors: requirement of members’

 

approval), (Loans or quasi-loans to persons connected with directors: requirement of

 

members’ approval)’.

 


 

Mr Secretary Darling

 

Agreed to  491

 

Page  93,  line  20  [Clause  202],  leave out subsection (5) and insert—

 

‘(5)    

No approval is required under this section on the part of the members of a body

 

corporate that—

 

(a)    

is not a UK-registered company, or

 

(b)    

is a wholly-owned subsidiary of another body corporate.’.

 

Mr Secretary Darling

 

Agreed to  595

 

Page  93,  line  29  [Clause  202],  leave out ‘198’ and insert ‘(Loans to directors:

 

requirement of members’ approval), (Quasi-loans to directors: requirement of members’

 

approval), (Loans or quasi-loans to persons connected with directors: requirement of

 

members’ approval)’.

 

Mr Secretary Darling

 

Agreed to  596

 

Page  93,  line  33  [Clause  203],  leave out ‘198’ and insert ‘(Loans to directors:

 

requirement of members’ approval), (Quasi-loans to directors: requirement of members’


 
 

Report Stage Proceedings: 17th October 2006              

868

 

Companies Bill[ [], continued

 
 

approval), (Loans or quasi-loans to persons connected with directors: requirement of

 

members’ approval)’.

 


 

Mr Secretary Darling

 

Agreed to  597

 

Page  94,  line  2  [Clause  204],  leave out ‘198’ and insert ‘(Loans to directors:

 

requirement of members’ approval), (Quasi-loans to directors: requirement of members’

 

approval), (Loans or quasi-loans to persons connected with directors: requirement of

 

members’ approval)’.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  20

 

Page  94,  line  4  [Clause  204],  after second ‘company’, insert ‘or of its associated

 

company’.

 

Mr Secretary Darling

 

Agreed to  598

 

Page  94,  line  8  [Clause  204],  after ‘company’ insert ‘or an associated company’.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  21

 

Page  94,  line  8  [Clause  204],  after ‘company’, insert ‘or where a company is

 

permitted to give a director a qualifying third party indemnity’.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  354

 

Page  94,  line  8  [Clause  204],  after ‘company’, insert ‘or any associated company’.

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not selected  22

 

Page  94,  line  15  [Clause  204],  leave out ‘incurred in connection with the matter’

 

and insert ‘under any transaction connected with the thing in question’.


 
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