New Clause 43

Company Law Reform Bill [Lords] – in a Public Bill Committee at 1:45 pm on 20th July 2006.

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Exercise of rights where shares held on behalf of others: exercise in different ways

‘(1) Where a person holds shares in a company on behalf of more than one person—

(a) rights attached to the shares, and

(b) rights under any enactment exercisable by the person holding the shares,

need not all be exercised, and if exercised, need not all be exercised in the same way.

(2) A member who exercises such rights but does not exercise all his rights, must inform the company to what extent he is exercising the rights.

(3) A member who exercises such rights in different ways must inform the company of the ways in which he is exercising them and to what extent they are exercised in each way.

(4) If a member exercises such rights without informing the company—

(a) that he is not exercising all his rights, or

(b) that he is exercising his rights in different ways,

the company is entitled to assume that he is exercising all his rights and is exercising them in the same way.’. —[Margaret Hodge.]

Brought up, and added to the Bill.