Session 2010-12
Publications on the internet
General Committee Debates
Delegated Legislation Committee Debates

Draft Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011

The Committee consisted of the following Members:

Chair: Mr Lee Scott 

Abrahams, Debbie (Oldham East and Saddleworth) (Lab) 

Baker, Steve (Wycombe) (Con) 

Campbell, Mr Alan (Tynemouth) (Lab) 

Coffey, Ann (Stockport) (Lab) 

Cunningham, Mr Jim (Coventry South) (Lab) 

Fuller, Richard (Bedford) (Con) 

Glass, Pat (North West Durham) (Lab) 

Goodwill, Mr Robert (Scarborough and Whitby) (Con) 

Hemming, John (Birmingham, Yardley) (LD) 

Hoban, Mr Mark (Financial Secretary to the Treasury)  

Kwarteng, Kwasi (Spelthorne) (Con) 

Lefroy, Jeremy (Stafford) (Con) 

Leslie, Chris (Nottingham East) (Lab/Co-op) 

Munn, Meg (Sheffield, Heeley) (Lab/Co-op) 

Reid, Mr Alan (Argyll and Bute) (LD) 

Sharma, Alok (Reading West) (Con) 

Stevenson, John (Carlisle) (Con) 

Wilson, Sammy (East Antrim) (DUP) 

Sarah Thatcher, Committee Clerk

† attended the Committee

Column number: 3 

Fourth Delegated Legislation Committee 

Wednesday 4 May 2011  

[Mr Lee Scott in the Chair] 

Draft Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011

2.30 pm 

The Financial Secretary to the Treasury (Mr Mark Hoban):  I beg to move, 

That the Committee has considered the draft Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011. 

It is a pleasure to serve under your chairmanship for the first time, Mr Scott. The order was considered by the Grand Committee in the other place last Wednesday and was universally welcomed as a necessary measure to provide clarity, consistency and certainty to companies-related legislation. 

By way of background to the order, the Companies Act 2006 provided for a single consolidated company law regime that applies across the whole of the UK. It repealed most of the Companies Act 1985, the Companies (Northern Ireland) Order 1986 and the Open-Ended Investment Companies Act (Northern Ireland) 2002. 

The 2006 Act was commenced in stages between Royal Assent in November 2006 and the final commencement order, which came into force in October 2009. There have been eight orders already commencing various provisions of the Act and five orders making consequential amendments, required as a consequence of its passing. The order is designed to complete and consolidate that lengthy process. 

The legislation that is amended by the order comprises the Companies Act 2006, the Insolvency Act 1986 and

Column number: 4 
various instruments that contain references to the Companies Act 1985 and to other legislation that has been superseded, repealed or revoked by the 2006 Act. The order also repeals the Companies Consolidation (Consequential Provisions) Act 1985. The rationale behind the amendments in the order is to ensure that companies legislation is clear, consistent and coherent. The order is uncontroversial and achieves the necessary consistency and clarity in the law. I therefore commend it to the Committee. 

2.31 pm 

Chris Leslie (Nottingham East) (Lab/Co-op):  It is indeed a pleasure to serve under your chairmanship, Mr Scott. May I take the opportunity on behalf of all Committee members to thank the Government for scheduling this vital piece of delegated legislation today of all days—the day before local elections? 

Hon. Members will know that, as a constructive Opposition, we seek to reach out the hand of friendship and agreement whenever possible. Never let it be said that we are afraid to support the Government on vital measures of state when they are clearly necessary and in the national interest. The order is a fine example of legislation on which we are more than happy to support the Government and work across party lines. I can safely say that we support the need to clarify the legislation, particularly given that the Act was passed while we were in office. Although there are several complex references in the order, clarifying the denomination of share capital in multiple currency arrangements and ensuring that the Northern Ireland and UK open-ended investment companies regulations are compatible are clearly matters on which we can work hand in hand. 

On this occasion, we are happy to support the Government. Let the record show that the Labour party is absolutely prepared to support measures such as this, when they are clearly in the national interest. 

Question put and agreed to.  

2.33 pm 

Committee rose.