House of Commons portcullis
House of Commons
Session 2005 - 06
Internet Publications
Other Bills before Parliament


 
 

Report Stage Proceedings: 19th October 2006              

964

 

Companies Bill[ [], continued

 
 

(b)    

the discharge of a liability of any person, other than a liability for a

 

liquidated sum.’.

 


 

Notice to registrar of existence of restriction on amendment of articles

 

Mr Secretary Darling

 

Added  NC99

 

To move the following Clause:—

 

‘(1)    

Where a company’s articles—

 

(a)    

on formation contain provision for entrenchment,

 

(b)    

are amended so as to include such provision, or

 

(c)    

are altered by order of a court or other authority so as to restrict or

 

exclude the power of the company to amend its articles,

 

    

the company must give notice of that fact to the registrar.

 

(2)    

Where a company’s articles—

 

(a)    

are amended so as to remove provision for entrenchment, or

 

(b)    

are altered by order of a court or other authority—

 

(i)    

so as to remove such provision, or

 

(ii)    

so as to remove any other restriction on, or any exclusion of, the

 

power of the company to amend its articles,

 

    

the company must give notice of that fact to the registrar.’.

 


 

Statement of compliance where amendment of articles restricted

 

Mr Secretary Darling

 

Added  nc100

 

To move the following Clause:—

 

‘(1)    

This section applies where a company’s articles are subject—

 

(a)    

to provision for entrenchment, or

 

(b)    

to an order of a court or other authority restricting or excluding the

 

company’s power to amend the articles.

 

(2)    

If the company—

 

(a)    

amends its articles, and

 

(b)    

is required to send to the registrar a document making or evidencing the

 

amendment,

 

    

the company must deliver with that document a statement of compliance.

 

(3)    

The statement of compliance required is a statement certifying that the

 

amendment has been made in accordance with the company’s articles and, where

 

relevant, any applicable order of a court or other authority.


 
 

Report Stage Proceedings: 19th October 2006              

965

 

Companies Bill[ [], continued

 
 

(4)    

The registrar may rely on the statement of compliance as sufficient evidence of

 

the matters stated in it.’.

 


 

Civil actions and foreign subsidiaries

 

John Battle

 

Mr Mike Weir

 

Not called  nc3

 

To move the following Clause:—

 

‘(1)    

For the purposes of this section—

 

“parent jurisdiction” means the jurisdiction within the United Kingdom in

 

which the parent company is incorporated or (as the case may be)

 

registered;

 

“relevant claim” means any claim by any natural person against a relevant

 

subsidiary in respect of personal injury suffered by the claimant outside

 

the United Kingdom;

 

“relevant parent” means any body corporate incorporated in the United

 

Kingdom or incorporated outside of the United Kingdom but required to

 

register a branch or place of business in the United Kingdom;

 

“relevant subsidiary” means a subsidiary wherever incorporated of a

 

relevant parent.

 

(2)    

The courts of the parent jurisdiction shall have jurisdiction to determine whether

 

a parent company and its relevant subsidiary shall be jointly and severally liable

 

in respect of any relevant claim pursuant to subsection (3) below.

 

(3)    

In the event that any relevant subsidiary is held liable (whether under this section

 

or otherwise and whether in the courts of the United Kingdom or otherwise) in

 

respect of any relevant claim, any parent company will be jointly and severally

 

liable with that relevant subsidiary in respect of that claim if—

 

(a)    

the parent company—

 

(i)    

was aware or ought reasonably to have been aware of the conduct

 

by the relevant subsidiary which gave rise to the relevant claim;

 

(ii)    

could reasonably foresee that such conduct would give rise to the

 

type of damage which is the subject matter of that claim; and

 

(iii)    

except where a relevant subsidiary is held strictly liable for the

 

consequences of any escape or emission (in which case this

 

paragraph shall not apply), had sufficient opportunity and time in

 

which to take reasonable steps to prevent the loss or injury which

 

is the subject of the relevant claim, but failed to do so; and

 

(b)    

the conduct of the relevant subsidiary which gave rise to the relevant

 

claim would have given rise to some liability (of any kind) on the part of

 

the parent company to that claimant if the parent company had

 

undertaken that conduct itself.’.

 



 
 

Report Stage Proceedings: 19th October 2006              

966

 

Companies Bill[ [], continued

 
 

Dissolution and restoration to the register: striking off: meaning of “disposal”

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not called  nc5

 

To move the following Clause:—

 

‘In this Chapter “disposal” includes part disposal.’.

 


 

Dissolution and restoration to the register: restoration to the register: meaning of

 

“Crown representative”

 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Not selected  nc6

 

To move the following Clause:—

 

‘In this Chapter the “Crown representative” means—

 

(a)    

in relation to property vested in the Duchy of Lancaster, the Solicitor to

 

that Duchy;

 

(b)    

in relation to property vested in the Duke of Cornwall, the Solicitor to the

 

Duchy of Cornwall;

 

(c)    

in relation to property in Scotland, the Queen’s and Lord Treasurer’s

 

Remembrancer;

 

(d)    

in relation to other property, the Treasury Solicitor.’.

 


 

Unamendable articles

 

Mr Edward Davey

 

David Howarth

 

Lorely Burt

 

Susan Kramer

 

Not called  NC89

 

To move the following Clause:—

 

‘(1)    

Notwithstanding anything in section 22, a company’s articles may provide that

 

specified provisions of the articles may not be amended or repealed—

 

(a)    

except with the unanimous consent of the members, or

 

(b)    

in any circumstances.


 
 

Report Stage Proceedings: 19th October 2006              

967

 

Companies Bill[ [], continued

 
 

(2)    

Provision for unamendable articles under this section may only be made in the

 

company’s articles on formation.

 

(3)    

Provision for unamendable articles shall count for the purposes of this Chapter as

 

provision for entrenchment.’.

 


 

Power to require unlimited companies to give information

 

Mr Edward Davey

 

David Howarth

 

Lorely Burt

 

Susan Kramer

 

Not called  NC90

 

To move the following Clause:—

 

‘(1)    

The Secretary of State shall have power to make regulations requiring unlimited

 

companies to bring to the attention of those dealing with such companies the risks

 

arising from the ability of unlimited companies to re-register as limited

 

companies.

 

(2)    

The regulations referred to in subsection (1) shall be subject to affirmative

 

resolution procedure.’.

 


 

Business and Finance Oversight Commission

 

Jim Cousins

 

Mr Austin Mitchell

 

John McDonnell

 

Not selected  NC91

 

To move the following Clause:—

 

‘Using the powers created under section 16 of the Companies (Audit,

 

Investigations and Community Enterprise) Act 2004 the Secretary of State shall

 

create a body to be called the Business and Finance Oversight Commission—

 

(i)    

for the oversight of the practices of all companies offering

 

securities to the public, and

 

(ii)    

to exercise the powers set out in section 16 (2) of the said Act.’.

 


 

Equal pay: enforcement and reporting

 

Stephen Hesford

 

Not called  nc97

 

To move the following Clause:—

 

‘(1)    

It shall be the duty of the chief executive officer of a company to—


 
 

Report Stage Proceedings: 19th October 2006              

968

 

Companies Bill[ [], continued

 
 

(a)    

take all reasonable steps to ensure that all employees of the company

 

receive equal pay as defined under the Equal Pay Act 1970, and

 

(b)    

take an annual audit of the pay of each employee in terms of paragraph

 

(a).

 

(2)    

Every company must report annually on matters contained in subsection (1), and

 

such report must be available for public inspection.

 

(3)    

It shall be an offence knowingly or recklessly to fail to perform the duties set out

 

in subsections (1) and (2).

 

(4)    

It shall be a defence to the offence in subsection (3) if all reasonable steps were

 

taken to comply with the duties contained in subsections (1) and (2); and it shall

 

be for the persons accused to prove on the balance of probabilities that all

 

reasonable steps were taken by him.

 

(5)    

A person guilty of an offence under this section shall be liable on summary

 

conviction to a fine not exceeding level 5 on the standard scale.’.

 


 

REMAINING AMENDMENTS TO CLAUSES

 

Mr Secretary Darling

 

Agreed to  470

 

Page  1  [Clause  1],  leave out lines 6 to 13 and insert—

 

    

‘“company” means a company formed and registered under this Act, that is—

 

(a)    

a company so formed and registered after the commencement of this Part,

 

or

 

(b)    

a company that immediately before the commencement of this Part—

 

(i)    

was formed and registered under the Companies Act 1985 (c. 6)

 

or the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032

 

(N.I. 6)), or

 

(ii)    

was an existing company for the purposes of that Act or that

 

Order,

 

    

(which is to be treated on commencement as if formed and registered

 

under this Act).’.

 

Mr Secretary Darling

 

Agreed to  471

 

Page  1,  line  14  [Clause  1],  leave out from ‘to’ to end of line 3 on page 2 and insert ‘

 

(a)    

companies registered, but not formed, under this Act (see Chapter 1 of

 

Part 33), and

 

(b)    

bodies incorporated in the United Kingdom but not registered under this

 

Act (see Chapter 2 of that Part).’.

 


 

Mr Secretary Darling

 

Agreed to  823

 

Page  2,  line  18  [Clause  2],  leave out subsection (3).

 



 
 

Report Stage Proceedings: 19th October 2006              

969

 

Companies Bill[ [], continued

 
 

Mr Secretary Darling

 

Agreed to  472

 

Page  3,  line  1  [Clause  4],  leave out ‘the Companies Acts’ and insert ‘this Act’.

 


 

Jim Cousins

 

Mr Austin Mitchell

 

Not called  683

 

Page  4,  line  28  [Clause  9],  at end insert—

 

‘(d)    

a statement setting out and verifying the identity of the initial

 

shareholders.’.

 


 

Mr Secretary Darling

 

Agreed to  764

 

Page  5,  line  44  [Clause  12],  at end insert—

 

‘( )    

in the case of a company that is to be a private company, any person who

 

is (or any persons who are) to be the first secretary (or joint secretaries)

 

of the company;’.

 


 

Mr Secretary Darling

 

Agreed to  718

 

Page  6,  line  4  [Clause  12],  leave out paragraph (c).

 

Mr Secretary Darling

 

Agreed to  765

 

Page  6,  line  9  [Clause  12],  leave out ‘of a public company’.

 

Mr Secretary Darling

 

Agreed to  719

 

Page  6,  line  11  [Clause  12],  leave out paragraph (c).

 

Mr Secretary Darling

 

Agreed to  720

 

Page  6,  line  14  [Clause  12],  leave out ‘or as an authorised signatory’.

 

Mr Secretary Darling

 

Agreed to  473

 

Page  6,  line  28  [Clause  14],  leave out subsection (2).

 



 
 

Report Stage Proceedings: 19th October 2006              

970

 

Companies Bill[ [], continued

 
 

Mr Secretary Darling

 

Agreed to  721

 

Page  7,  line  20  [Clause  16],  at end insert ‘or’.

 

Mr Secretary Darling

 

Agreed to  766

 

Page  7,  line  21  [Clause  16],  leave out ‘in the case of a public company,’.

 

Mr Secretary Darling

 

Agreed to  722

 

Page  7,  line  22  [Clause  16],  leave out from ‘company,’ to end of line 23.

 

Mr Secretary Darling

 

Agreed to  688

 

Page  7,  line  33  [Clause  17],  at end insert ‘(see section 29)’.

 


 

Mr Secretary Darling

 

Agreed to  206

 

Page  8,  line  10  [Clause  18],  leave out ‘A company’s articles of association’ and

 

insert ‘Articles of association registered by a company’.

 


 

Mr Alan Duncan

 

Mr Jonathan Djanogly

 

Charles Hendry

 

Mr Crispin Blunt

 

James Brokenshire

 

Justine Greening

 

Negatived on division  790

 

Page  9,  line  13,  leave out Clause 22.

 

Mr Secretary Darling

 

Agreed to  837

 

Page  9,  line  14  [Clause  22],  leave out ‘provide’ and insert ‘contain provision

 

(“provision for entrenchment”) to the effect’.

 

Mr Secretary Darling

 

Agreed to  838

 

Page  9  [Clause  22],  leave out line 18.

 

Mr Secretary Darling

 

Agreed to  839

 

Page  9,  line  24  [Clause  22],  after ‘articles’ insert ‘—

 

(a)    

’ .


 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2006
Revised 20 October 2006