Clause 191

Company Law Reform Bill [Lords] – in a Public Bill Committee at 7:15 pm on 11th July 2006.

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Exceptions for minor and business transactions

Photo of John Bercow John Bercow Conservative, Buckingham

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’.

Photo of Jonathan Djanogly Jonathan Djanogly Shadow Minister (Business, Innovation and Skills), Shadow Solicitor General, Shadow Minister (Justice), Shadow Solicitor General

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.

Photo of Margaret Hodge Margaret Hodge Minister of State (Industry and the Regions)

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.

Amendment, by leave, withdrawn.

Clause 191 ordered to stand part of the Bill.

Clause 192 ordered to stand part of the Bill.