Clause 191
Company Law Reform Bill [Lords]
7:15 pm

Exceptions for minor and business transactions

Photo of Jonathan Djanogly

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. 277, in clause 191, page 86, line 19, leave out ‘£10,000’ and insert ‘£50,000’.

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John Bercow (Buckingham, Conservative)

With this it will be convenient to discuss amendment No. 278, in clause 191, page 86, line 26, leave out ‘£15,000’ and insert ‘£50,000’.

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Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)

My point is simply that the exception on company business does not come into play until the value exceeds £50,000. For simplicity, would it not be easier to standardise the figures in the exclusion clauses? The figure suggested is probing.

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Margaret Hodge (Minister of State (Industry and the Regions), Department of Trade and Industry; Barking, Labour)

The exception in clause 188 to which the hon. Gentleman refers is for company business. I questioned that myself. If someone were to have a credit limit for a trip abroad or something similar, as long as they were on company business, it  would be appropriate to have it at that level. Clause 191 deals with loans to individual directors and does not necessarily have any relation to the activities that they may undertake on behalf of the company. That is the reason for the difference.

Photo of Jonathan Djanogly

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 her explanation. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 191 ordered to stand part of the Bill.

Clause 192 ordered to stand part of the Bill.