May I briefly remind the Committee what clause 3 is designed to achieve. It addresses the technical issues relating to the process of agreeing contracts and undertaking business transactions. That is not surprising, because that aspect of industrial and provident society law has not been revised in recent times and some provisions are archaic. The new provision sets out the changes in law with greater clarity and, admittedly, at somewhat greater length than the original draft. Incidentally, if the House passes the Bill into law, I will certainly have a more substantial bundle to my name than I thought that I would have at the start.

Let me give examples of the way in which the new clauses and the schedule will work. The current legislation requires a society to have a common seal and to use it in certain transactions. It also requires a society to keep the seal in a secure place, which often means that documents requiring the use of a seal must be transported to the location where the seal is kept.

New clause 5 will allow societies to operate without a seal. That freedom is the same as that for a company. Overseas transactions, which are particularly difficult when a seal is required, will be facilitated, and the enabling of contracts before a society is registered, which is obviously a critical part of the establishment of a society, will also be made easier. The new clause will reduce the costs on the co-operative and community benefit society movement, and the administrative complexity of co-operatives. I commend the provisions to the Committee.