Clause 705
Company Law Reform Bill [Lords]
12:30 pm
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
Regulations can be made under the clause to replace provisions made by section 693 of the 1985 Act. The clause confers on the Secretary of State a power to make regulations as to the information that overseas companies must display in specified locations, include in specified documents or communications, or provide to those who may request it in the course of business. Earlier, the Minister mentioned one way in which the clause would apply.
To what extent do the Government intend to differentiate the disclosure regime from that which applies to UK companies? Is it likely that changes will be suggested to what happens now? What is the timing on the new proposals? I appreciate that those issues tie in closely with clause 706, and I would make the same points in relation to that clause.
Vera Baird (Parliamentary Under-Secretary, Department for Constitutional Affairs; Redcar, Labour)
As to the timing, I shall perhaps be able to help the hon. Gentleman in a moment.
The hon. Gentleman’s other question was about the difference between the duties to be imposed as regards the disclosure of particulars on overseas companies trading in the UK and companies incorporated in the UK. The regulations will cover the information that overseas companies must display in specified locations, include in specified documents or communications, or provide to those who make a request in the course of business.
By way of example, the regulations could require an overseas company to display a sign with its name on outside a branch, include its name and country of incorporation on every invoice, and provide its name to anyone who asks for it when doing business with the company. The regulations can impose civil and criminal sanctions for failing to comply with the trading disclosure requirements, and those will correspond to the sanctions imposed on UK companies.
On the timing, we shall consult on the regulations after Royal Assent.
To complete my answer to the hon. Gentleman’s points, let me add that overseas companies will be required to provide details of their country of registration—their nationality, as it were—and their registered number there.
The current requirements will continue until the new regulations come into force, which I hope is reassuring. I am informed that the experts think that there is unlikely to be much difficulty.
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
I am reassured, and I thank the Minister for that answer.