Clause 90
Company Law Reform Bill [Lords]
2:15 pm
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
I beg to move amendment No. 31, in clause 90, page 38, line 11, leave out ‘a special' and insert ‘an ordinary'.
The clause relates to sections 43(1) and 43(2) of the 1985 Act. I am not sure how long it has been since a special resolution has been needed to re-register a private company as a public company. The Minister may be able to advise me on that. It is one of those things that is lost in the mists of time. It is worth asking, on a probing basis, whether anyone has considered whether it should remain the case that such re-registration is required. I can see why minority shareholders may need protection if a public company is re-registered as a private company—in other words, the other way around—after a takeover or the like, but that is not the case. I wonder why an ordinary resolution should not, in the situation we are concerned with, be good enough.