Margaret Hodge (Minister of State (Industry and the Regions), Department of Trade and Industry; Barking, Labour)

I beg to move amendment No. 75, in 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'.

The amendment arises from a debate that took place on Report in another place, when the Bill was amended to remove the requirement for subscribers’ names and addresses and the statement of capital and initial shareholdings. That requirement was replaced with a power that would enable the Secretary of State, in regulations that can be made under the Bill, to prescribe the types of information that are to be provided in the statement of capital and initial shareholdings for the purpose of identifying the subscribers to the memorandum of companies to be formed with share capital. Consistent with that approach taken to companies that are to have a share capital on formation, the amendment carries forward the principle that the Secretary of State should be able to specify what is required for the purposes of identifying the subscribers, where it is proposed that a company will be formed as a company limited by guarantee.

As we mentioned in the other place, we envisage that the power will be used initially to continue to require the names and addresses of the subscribers to be provided. Both the Serious Fraud Office and the companies investigation branch have confirmed to us that that information is useful in combating fraud, and we see no reason not to retain it as a requirement for the time being. The address, as now, does not need to be a residential address; a contact address is sufficient. The power will provide flexibility for the future if, for example, it is concluded that the requirement for  subscribers’ addresses is no longer necessary. The power could be used to remove that requirement or to provide for an alternative or for better information pertaining to a subscriber’s identity.

Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)

The amendment seems to us to be well considered, not least in the context of avoiding exposure to extremists, which we shall discuss in much more detail later on, and it has our support.