Clause 82
Company Law Reform Bill [Lords]
2:00 pm
Vera Baird (Parliamentary Under-Secretary, Department for Constitutional Affairs; Redcar, Labour)
The rules relating to trading disclosures are complex. They are set out in chapter I, part XI of the 1985 Act, section 693 of which applies similar rules to overseas companies. There is a separate set of rules in the Business Names Act 1985 that refer to a company trading under a name under than its registered name, even if the only difference is the suffix Ltd or plc. The rules are not identical: the information required and what premises and what documents are involved all vary.
As the company law review recommended, we intend to use the powers conferred by the clause and the similar power provided under clause 666 related to overseas companies to replace all the existing disclosure rules with a single set of regulations. We will consult on the matter and we intend to rationalise the requirements and make compliance simpler for companies. We will not extend the rules; we need the power to regulate in order to replicate sections 348, 349 and 351 of the Companies Act 1985. When we consult on the regulations, they will be subject to the affirmative resolution procedure, so there will be scope for debate on them.