New Clause 41
Company Law Reform Bill [Lords]
1:45 pm
Information rights: status of rights
‘(1) This section has effect as regards the rights conferred by a nomination under section (Traded companies: nomination of person to enjoy information rights) (nomination of person to enjoy information rights).
(2) Enjoyment by the nominated person of the rights conferred by the nomination is enforceable against the company by the member as if they were rights conferred by the company’s articles.
(3) Any enactment, and any provision of the company’s articles, having effect in relation to communications with members has a corresponding effect (subject to any necessary adaptations) in relation to communications with the nominated person.
(4) In particular—
(a) where under any enactment, or any provision of the company’s articles, the members of a company entitled to receive a document or information are determined as at a date or time before it is sent or supplied, the company need not send or supply it to a nominated person—
(i) whose nomination was received by the company after that date or time, or
(ii) if that date or time falls in a period of suspension of his nomination; and
(b) where under any enactment, or any provision of the company’s articles, the right of a member to receive a document or information depends on the company having a current address for him, the same applies to any person nominated by him.
(5) The rights conferred by the nomination—
(a) are in addition to the rights of the member himself, and
(b) do not affect any rights exercisable by virtue of any such provision as is mentioned in section (Effect of provisions of articles as to enjoyment or exercise of members’ rights) (provisions of company’s articles as to enjoyment or exercise of members’ rights).
(6) A failure to give effect to the rights conferred by the nomination does not affect the validity of anything done by or on behalf of the company.
(7) References in this section to the rights conferred by the nomination are to—
(a) the rights referred to in section (Traded companies: nomination of person to enjoy information rights)(3) (information rights), and
(b) where applicable, the rights conferred by section (Information rights: form in which copies to be provided)(3) (right to hard copy communications) and section (Information as to possible rights in relation to voting) (information as to possible voting rights).’. —[Margaret Hodge.]