§ [No. 42]
§ After Clause 23 insert the following new clause:
§ Statement by Secretary of State with respect to the exercise of his powers in relation to a company in liquidation, etc.
§ ".—(1) Subject to the following provisions of this section, in the case of a company—
- (a) which is a company in liquidation; or
- (b) which is a company in financial difficulties within the meaning of section 16 of this Act in relation to which the Board have exercised any of their powers under that section or under section 15 of this Act;
§ The time referred to above is the beginning of the liquidation in a case falling within paragraph (a) above and the relevant time as defined by section 16(6) of this Act in a case falling within paragraph (b) above.
§ (2) The period applicable by virtue of this subsection is—
- (a) in a case falling within paragraph (a) of subsection (1) above, the period of six months beginning with the beginning of the liquidation; and
- (b) in a case falling within paragraph (b) of that subsection, the period of six months beginning with the date on which the Secretary of State receives written notification from the Board that they have exercised any of their powers under section 15 or 16 of this Act in relation to the company in question.
§ (3) Where by virtue of paragraph (b) of subsection (1) above the Secretary of State is required to lay before Parliament a statement with respect to the exercise of his powers under the Insurance Companies Act 1974 in relation to any company, that subsection shall not also apply by virtue of paragraph (a) 1651 thereof in the case of that company in the event of the company's going into liquidation.
§ (4) The Secretary of State shall not be required to include in any statement under this section any information which might in his view prejudice any criminal proceedings which have been or may be instituted against any person."
§ Lord BESWICKMy Lords, perhaps I should just say that this new clause requires the Secretary of State to lay before Parliament
a statement with respect to the exercise of his powers under the Insurance Companies Act 1974in relation to the failed company in question. The wording of the clause avoids giving the Secretary of State a responsibility, the exercise of which would often be liable to prejudice court proceedings or to conflict with other statutory processes. At the same time it places on him the reasonable obligation, when an insurance company fails, to give Parliament within a few months a factual account of the recent use he has made, in respect of that company, of the extensive powers Parliament has given him in this field. I beg to move.
§ Moved, That this House doth agree with the Commons in the said amendment.—(Lord Beswick.)