Clause 726
Company Law Reform Bill [Lords]
12:45 pm
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
Again, the clause provides the registrar with a power to amend the register if incomplete details are given. Will the registrar formulate an amendment process, so that unfairness or inconsistency cannot slip into the system?
Vera Baird (Parliamentary Under-Secretary, Department for Constitutional Affairs; Redcar, Labour)
The clause introduces a new provision, giving the registrar power to correct information that has been supplied by informal means—for example, by making a phone call to the recognised contact of the company in question. The ability to make informal corrections, rather than having to reject the information or correct it through a more bureaucratic process of issuing formal notices, is an important one that companies ought to welcome. The provision will operate in defined circumstances, which could be where the information originally received is incomplete—for example, where some fields on a standard form have been left blank by accident—where information is internally inconsistent, such as where a company name does not correspond to the company number, or where unnecessary information has been provided that needs to be weeded out.
Given the informality of the process, there need to be protections in it. The ability to make informal corrections will apply only where companies have informed the registrar that corrected information should apply. The registrar will need to initiate the correction and be satisfied that the person is authorised to give the information sought. In order to be satisfied as to the authority of the person whom she is telephoning, the registrar will be able to provide for identification numbers or other checks of identity. There are some precautions but, none the less, maximum flexibility and a provision that has a good deal of utility.
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
I thank the Minister for that explanation, which clarifies the matter. I certainly support the clause, but the potential evil that I was trying to describe was the problem that can arise from an inconsistent approach by the registrar.