Clause 40
Company Law Reform Bill [Lords]
5:45 pm
Margaret Hodge (Minister of State (Industry and the Regions), Department of Trade and Industry; Barking, Labour)
I think that I can be a little more helpful on that query. Again, the purpose of the clause is to provide safeguards for those dealing with companies in good faith. It has no impact on the liability of directors, which will be dealt with in clause 157, which we will discuss later. The clause before us will not have the impact that the hon. Gentleman described.
I am reluctant to enter into a debate in Committee on whether “affect” is the appropriate word. I assumed that in the drafting of the clause, lawyers chose an appropriate word. The clause has no impact on directors’ liabilities and duties, which are covered by clause 157, which no doubt we will spend considerable time debating.