Public Bill Committee: 12th June 2007

181

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Bridget Prentice

177

Schedule  13,  page  210,  line  18,   leave out from ‘means’ to end of line 19 and

insert—

‘(a)	in a case within sub-paragraph (1)(a), the number of shares by which

the person’s shareholding exceeds the share limit, and

(b)	in a case within sub-paragraph (1)(b), the number of shares held by the

person in excess of the number of shares the person could hold without

the person’s entitlement to exercise, or control the exercise of, voting

rights exceeding the voting limit.’.

Members’ explanatory statement

This amendment is related to amendments 162, 163 and 176. It changes the definition of “excess

shares” to reflect the changes made in these provisions.

Bridget Prentice

178

Schedule  13,  page  210,  line  20,   leave out sub-paragraph (3) and insert—

‘()	References in this paragraph to a person’s shareholding (or holding of shares)

or entitlement are to be read in accordance with any applicable licensing rules

made under paragraph 38(2).’.

Members’ explanatory statement

This amendment brings the reference to associates into line with the changes made to paragraph

38(2) pursuant to amendment 166.

Bridget Prentice

179

Schedule  13,  page  210,  line  25,   leave out ‘relevant’.

Members’ explanatory statement

This amendment is related to amendment 171, which deleted the concept of “relevant licensed

body”.

Bridget Prentice

180

Schedule  13,  page  213,  line  20,   at end insert ‘or (aa).’.

Members’ explanatory statement

This amendment is related to amendment 163. It provides that paragraph 50 applies both where

licensing rules have been made under paragraph 38(1)(a) and paragraph 38(1)(aa).

Bridget Prentice

181

Schedule  13,  page  213,  line  22,   leave out from ‘where’ to end of line 24 and insert

‘a non-authorised person acquires—

(a)	a shareholding in a licensed body or parent undertaking of a licensed

body which exceeds the share limit, or

(b)	an entitlement to exercise, or control the exercise of, voting rights in a

licensed body or parent undertaking of a licensed body which exceeds

the voting limit.’.

Members’ explanatory statement

This amendment is related to amendment 163 and 180. It provides that the licensing authority may

Public Bill Committee: 12th June 2007

182

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notify the Board both where a non-authorised person exceeds the share limit or exceeds the voting

limit.

Bridget Prentice

182

Schedule  13,  page  213,  line  36,   at end insert—

‘( )	If the share limit or voting limit is breached in relation to a parent undertaking of

a licensed body, references in sub-paragraphs (3) and (6) to the licensed body

include the parent undertaking.’.

Members’ explanatory statement

This amendment is related to amendments 162 and 163 and 180 and 181. It provides that the par­

ent undertaking must also be notified in the circumstances set out in the amendment.

Bridget Prentice

183

Schedule  13,  page  214,  line  7,   at end insert—

‘( )	If the share limit or voting limit is breached in relation to a parent undertaking of

a licensed body, references in sub-paragraphs (1) and (5) to the licensed body

include the parent undertaking.’.

Members’ explanatory statement

This amendment is related to amendments 162 and 163 and 180 and 181. It provides that the par­

ent undertaking must also be notified in the circumstances set out in the amendment.

Bridget Prentice

114

Clause  90,  page  51,  line  10,  leave out ‘or has an interest in shares’ and insert ‘or has

an interest or an indirect interest’.

Members’ explanatory statement

This amendment is related to amendment 111, replacing the reference to a non-authorised person

who has an interest in shares with a reference to a non-authorised person who has an interest or

an indirect interest.

Bridget Prentice

184

Schedule  14,  page  214,  line  35,   leave out paragraph (b).

Members’ explanatory statement

This amendment removes licensing authorities' power to intervene where a person is appointed

manager or receiver of a licensed body's property, because insolvency is covered by paragraph

1(2)(c). This is consistent with the Law Society’s powers in relation to recognised bodies, as

amended by Schedule 16 paragraph 113.

Public Bill Committee: 12th June 2007

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Bridget Prentice

115

Clause  105,  page  57,  line  5,  leave out ‘a’ and insert ‘an independent’.

Members’ explanatory statement

This amendment is part of a set of amendments that change the Bill’s references to trade unions to

independent trade unions, as defined in amendment 126. This amendment provides that independ­

ent trade unions have the exemption set out in Clause 105(1).

Bridget Prentice

116

Clause  105,  page  57,  line  7,  leave out second ‘a’ and insert ‘an independent’.

Members’ explanatory statement

This amendment is part of a set of amendments that change the Bill’s references to trade unions to

independent trade unions, as defined in amendment 126. This amendment provides that independ­

ent trade unions have the exemption set out in Clause 105(2).

Bridget Prentice

117

Clause  106,  page  57,  line  10,  leave out ‘a’ and insert ‘an independent’.

Members’ explanatory statement

This amendment is part of a set of amendments that change the Bill’s references to trade unions to

independent trade unions, as defined in amendment 126. This amendment provides that independ­

ent trade unions may apply for modifications of licensing rules under Clause 106.

Bridget Prentice

118

Clause  106,  page  57,  line  36,  leave out ‘in shares’ and insert ‘or an indirect

interest’.

Members’ explanatory statement

This amendment is related to amendment 111, replacing the reference to non-authorised persons

who have an interest in shares, with a reference to non-authorised persons who have an interest

or an indirect interest.

Bridget Prentice

119

Clause  108,  page  59,  line  7,  leave out ‘in which non-authorised persons have an

interest’ and insert ‘held by non-authorised persons’.

Members’ explanatory statement

This amendment is related to amendment 111. It refines the first branch of the ownership condition

for a low risk body, providing that the proportion of shares in B held by non-authorised persons is

less than 10%.

Public Bill Committee: 12th June 2007

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Bridget Prentice

120

Clause  108,  page  59,  line  9,  leave out ‘power’ and insert ‘rights’.

Members’ explanatory statement

This amendment refines the second branch of the ownership condition for a low risk body, provid­

ing that the proportion of voting rights, rather than voting power, in B which non-authorised per­

sons are entitled to exercise, or control the exercise of, is less than 10%.

Bridget Prentice

121

Clause  108,  page  59,  line  12,  leave out ‘in which non-authorised persons have an

interest’ and insert ‘held by non-authorised persons’.

Members’ explanatory statement

This amendment is related to amendment 111. It refines the third branch of the ownership condi­

tion for a low risk body, providing that the proportion of shares held by a non-authorised person

in a parent undertaking of B is less than 10%.

Bridget Prentice

122

Clause  108,  page  59,  line  14,  leave out ‘power’ and insert ‘rights’.

Members’ explanatory statement

This amendment refines the third branch of the ownership condition for a low risk body, providing

that the proportion of voting rights, rather than voting power, in a parent undertaking of B which

non-authorised persons are entitled to exercise, or control the exercise of, is less than 10%.

Bridget Prentice

123

Clause  108,  page  59,  leave out lines 20 to 23.

Members’ explanatory statement

This amendment is related to amendments 120 and 122, which replace the concept of voting power.

A definition of voting power is therefore no longer needed.

Bridget Prentice

124

Clause  111,  page  60,  line  21,  leave out ‘in shares’.

Members’ explanatory statement

This amendment is related to amendment 111. It refines the test for whether a body falls under sub-

paragraph (d), by replacing the reference to persons “with an interest in shares” with a reference

to persons “with an interest”.

Bridget Prentice

125

Clause  111,  page  60,  line  24,  leave out sub-paragraph (ii) and insert—

‘(ii)

are bodies in which persons within paragraphs (a) to (c) are

entitled to exercise, or control the exercise of, more than 90% of

the voting rights.’.

Public Bill Committee: 12th June 2007

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Members’ explanatory statement

This amendment is related to amendment 111. It refines the test for whether a body falls under sub-

paragraph (d), providing that where a manager or person with an interest is a body, persons within

(a) – (c) must exercise or control the exercise of more than 90% of voting rights.

Bridget Prentice

42

Schedule  15,  page  224,  line  29,  at end insert—

‘The terms of appointment of the chairman or any other member may provide

for the Board to pay, or make payments towards the provision of, a pension,

allowance or gratuity to or in respect of that person.

If the Board thinks there are circumstances that make it right for a person

ceasing to hold office as chairman or another member to receive compensation,

the OLC may pay that person such compensation as the Board may

determine.’.

Members’ explanatory statement

This amendment provides that the terms of appointment of the chairman or other ordinary mem­

bers of the OLC may provide for pensions, allowances or gratuities. It also allows the OLC to pay

compensation to the chairman or other ordinary members in certain circumstances.

Bridget Prentice

43

Schedule  15,  page  224,  line  42,  at end insert—

‘The OLC may pay compensation for loss of employment to or in respect of an

ombudsman (or former ombudsman), or a member (or former member) of staff

appointed under paragraph 11.’.

Members’ explanatory statement

This amendment allows the OLC to pay compensation to its ombudsmen or former ombudsmen, or

to its staff appointed under paragraph 11 of Schedule 15 or former staff, for loss of employment

with the OLC.

Simon Hughes

John Hemming

227

Schedule  15,  page  226,  line  15,  leave out paragraphs 21 and 22.

Members’ explanatory statement

To ensure the operational independence of the OLC.

Bridget Prentice

8

Clause  133,  page  68,  line  42,  leave out paragraph (i).

Members’ explanatory statement

This amendment reverses one made in the House of Lords enabling scheme rules to make provision

Public Bill Committee: 12th June 2007

186

Legal Services Bill-[ [], continued

for the award of costs in favour of the OLC against the respondent to a complaint in additional

circumstances to those already specified in Clause 133(3).

Simon Hughes

John Hemming

228

Clause  133,  page  68,  line  44,  leave out from ‘complaint’ to end of line 4 on page

69.

Members’ explanatory statement

To ensure it is not possible for complainants to be liable to pay costs.

Simon Hughes

John Hemming

229

Clause  133,  page  69,  line  5,  leave out paragraph (j).

Members’ explanatory statement

See Members’ explanatory statement for amendment 228.

Simon Hughes

John Hemming

230

Clause  133,  page  69,  line  14,  at end insert—

‘( )	for the identity of respondents to be published.’.

Members’ explanatory statement

To prompt the OLC to make rules about identifying those legal services providers it has upheld

complaints against.

Bridget Prentice

9

Clause  133,  page  69,  line  38,  leave out ‘, (i)’.

Members’ explanatory statement

This amendment is consequential on amendment 8, removing a reference back to the provision

which that amendment removes.

Bridget Prentice

10

Clause  136,  page  70,  line  37,  leave out subsections (2) to (4).

Members’ explanatory statement

This amendment reverses amendments made in the House of Lords which— (a) limit the circum­

stances in which a complaint handling charge may be payable by the respondent to the complaint

and (b) require reduction, waiver or refund of charges in specific circumstances.

Simon Hughes

John Hemming

231

Clause  136,  page  70,  line  39,  leave out paragraphs (a) to (c) and insert—

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‘(a)	the complaint against the respondent is determined or otherwise resolved

at least partially in favour of the complaint; or

(b)	in the ombudsman’s in accordance with the regulatory arrangements

which the approved regulator has made under section 112.’.

Members’ explanatory statement

This series of amendments requires the OLC to set rules enabling charges payable by respondents

to be reduced or waived and indicates appropriate conditions for these to apply.

Simon Hughes

John Hemming

232

Clause  136,  page  71,  line  5,  leave out subsections (3) and (4).

Members’ explanatory statement

See Members explanatory statement for amendment 231.

Bridget Prentice

11

Clause  136,  page  71,  leave out line 19.

Members’ explanatory statement

This amendment is consequential on amendment 10, removing a reference back to the provision

which that amendment removes.

Bridget Prentice

12

Clause  136,  page  71,  line  22,  leave out from ‘circumstances’ to end of line 23.

Members’ explanatory statement

This amendment is consequential on amendment 10, removing a reference back to the provision

which that amendment removes.

Simon Hughes

John Hemming

233

Clause  137,  page  71,  line  34,  at end insert—

‘( )	In considering what is fair and reasonable in the circumstances, the Ombudsman

shall take into account the relevant levels of damages awarded by courts in similar

circumstances, and relevant codes of practices, professional rules, standards and

guidance.’.

Members’ explanatory statement

This amendment is intended to give guidance to the OLC as to the way in which it should determine

what is ‘fair and reasonable’ when exercising its powers under the Act.

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Revised 12 June 2007