HL Deb 23 July 1973 vol 344 cc1584-5

[No. 42]

Clause 38, page 31, line 12, at end insert— (5) In relation to section (Restriction on transactions with connected persons) above, subsection (1) above shall have effect as if the reference to an insurance company to which the Act of 1958 applies included a reference to any subordinate company within the meaning of that section of any such insurance company.

LORD DIAMOND

My Lords, may I help the noble Earl, who seems to have lost his place? This has already been discussed. I beg to move.

Moved, That this House doth agree with the Commons in the said Amendment.—(Lord Diamond.)

LORD BROWN

My Lords, I intended to make a comment about the content of the subordinate company when it was raised on the new Clause 10, but I missed my opportunity. I wonder whether I could make this comment now. It had never occurred to me previously that the term "subordinate company" did not, so to speak, embrace the sort of control set out in Clause 10, and it seems to me to be very useful that this conception should be brought into this Bill.

The comment which I want to make now, which may be slightly off-centre for the purpose of this Amendment, is this, that this would be an extremely important and useful conception to bring into the Companies Bill, which I believe the Department of Trade and Industry now has under consideration, because, as well as being relevant to the operations of insurance companies, it is equally relevant to the operations of many other companies. We have recently had cases in company affairs which are highly undesirable, and if this conception of a subordinate company had appeared in the Companies Act some of the wrongdoers might have been caught. So I would congratulate the Minister on introducing this conception into the Bill, and I hope it will be thought of as being useful in the future Companies Bill.

THE EARL OF LIMERICK

My Lords, I am grateful to the noble Lord, Lord Brown, for that comment. I can assure him that I will give consideration to what he said, and will bring it to the attention of my noble and right honourable friends who share responsibility for these matters.

5.51 p.m.