HC Deb 26 October 1989 vol 158 cc1165-6

410.—(1) The Secretary of State may by regulations require notice in the prescribed form to be given to the registrar of—

  1. (a) the occurrence of such events as may be prescribed affecting the nature of the security under a floating charge of which particulars have been delivered for registration, and
  2. (b) the taking of such action in exercise of powers conferred by a fixed or floating charge of which particulars have been delivered for registration, or conferred in relation to such a charge by an order of the court, as may be prescribed.

(2) The regulations may make provision as to—

  1. (a) the persons by whom notice is required to be, or may be, given, and the period within which notice is required to be given;
  2. (b) the filing in the register of the particulars contained in the notice and the noting of the date on which the notice was given; and
  3. (c) the consequences of failure to give notice.

(3) As regards the consequences of failure to give notice of an event causing a floating charge to crystallise, the regulations may include provision to the effect that the crystallisation—

  1. (a) shall be treated as ineffective until the prescribed particulars are delivered, and
  2. (b) if the prescribed particulars are delivered after the expiry of the prescribed period, shall continue to be ineffective against such persons as may be prescribed, subject to the exercise of such powers as may be conferred by the regulations on the court.

(4) The regulations may provide that if there is a failure to comply with such of the requirements of the regulations as may be prescribed, such persons as may be prescribed are liable to a fine.

(5) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(6) Regulations under this section shall not apply in relation to a floating charge created under the law of Scotland by a company registered in Scotland.".'.—[Mr. Forth.]

Brought up, and read the First time.

Mr. Forth

I beg to move, That the clause be read a Second time.

This new clause would replace clause 95 of the Bill. It contains amendments to the new sections that require additional particulars to be delivered to the registrar. The amendments make changes to the additional particulars to be delivered in respect of debentures, the duties of the registrar to file notices relating to receivers and managers, and the application of new section 410 in the new clause under Scots law.

Mr. Cousins

When we talked earlier in another context about the costs of compliance of regulatory bodies, the Minister was keen that such bodies should take the cost of compliance into account. I was a little disturbed by what the Minister said in speaking to this new clause. I do not think that he took the legal sanctions in matters of this kind as seriously as they deserve to be taken. The new clause creates a new offence for which a fine may be imposed. Will the Minister outline what the size of that fine might be? This is referred to in section 408.

Mr. Forth

I cannot tell the hon. Member at this stage what the size of the fine will be.

Mr. Cousins

That is disgraceful.

Mr. Forth

In the nature of this sort of provision, it is unusual to specify the exact level of the fine. I should have thought that the hon. Gentleman would know that by now. I am surprised that, having sat through the Committee stage, he even has to ask the question. Throughout these important provisions, and I am glad that the hon. Gentleman has been following them, we have tried to strike a balance between endeavouring——

It being ten minutes to Ten o'clock, MR. DEPUTY SPEAKER proceeded, pursuant to the order this day, to put forthwith the Question already proposed from the Chair.

Question agreed to.

Clause read a Second time, and added to the Bill.

MR. DEPUTY SPEAKER then proceeded to put forthwith the Question on new clauses and new schedules, moved by a member of the Government, of which notice had been given, to that part of the Bill to be concluded at ten minutes to Ten o'clock.

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