HL Deb 11 November 1976 vol 377 cc842-3

[Nos.47 and 48]

Clause 22, page 25, line 33, leave out from ("the") to ("or") in line 36 and insert ("relevant date")

Clause 22, page 25, line 38, at end insert— ("In this subsection "relevant date" means the date on which the company has complied with—

  1. (a) section 407 of the Act of 1948 (documents to be delivered for registration by oversea company when establishing a place of business in Great Britain); or
  2. (b) if there has been a change in its corporate name, section 409(2) of that Act (return to be delivered for registration by oversea company where corporate name is changed.)")

11.15 p.m.

Lord WINTERBOTTOM

My Lords, I beg to move that this House doth agree with their Commons in their Amendments Nos. 47 and 48 en bloc. At the same time I should like to speak to Amendment No. 60. Clause 22 provides the Secretary of State with a useful new power to prevent companies incorporated overseas which have a place of business in Great Britain from trading in this country under undesirable or misleading names. It enables him to serve notice on an oversea company to the effect that he considers the use of its corporate name here is or would be undesirable, and provides for penalties to be imposed on the company and its officers if the company continues to carry on business in this country under its corporate name more than two months after notice has been served.

However, as it is drafted, the clause enables the Secretary of State to serve notice on companies only during a period of six months following their registration under Part X of the Companies Act 1948—or within 6 months of the coming into operation of the Bill if that is later. It does not give him any power to deal with the situation in which an oversea company which has been established here for more than six months changes its corporate name to a name that is undesirable. This is a serious lacuna. Following on what the noble Lord, Lord Lyell, mentioned, I may say that "lacuna" is a Latin word and that, as he said, one day we may have to deal with prospectuses in foreign languages. I once made an election address—which is a form of prospectus—in Urdu.

The Amendments meet it by enabling the Secretary of State to serve notice on an oversea company to the effect that use of a new corporate name is or would be undesirable provided that he does so within six months of receipt of notification of a change of its corporate name.

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