Clause 41
Company Law Reform Bill [Lords]
6:00 pm
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
This provision deals with transactions involving directors or their associates, and it ties in with section 322A of the Companies Act 1985. It was introduced relatively recently by the Companies Act 1989. At that time there was quite a lot of discussion about it, but there has not been much discussion since then, and it was not mentioned at all in the Lords. It provides some broad powers, particularly relating to interpretation and the courts’ ability as set out in subsection (6) to make orders
“on such terms as appear to the court to be just.”
Will the Minister provide details on the operation of the clause in practice and on the extent to which time has shown it to be fit for purpose?