§ 3.19 p.m.
§ Lord BOYD-CARPENTERMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what action they propose to take in respect of the EEC Fifth Directive on company law.
§ Lord TREFGARNEMy Lords, the draft European Community Fifth Directive on company law is at present before the European Parliament. The next step is for the European Parliament to give its opinion on the draft directive. Only then will the Commission make a formal proposal to the Council of Ministers. This is not expected for some considerable time, and I cannot predict what action may be needed until the terms of the proposed directive are known.
§ Lord BOYD-CARPENTERMy Lords, while thanking my noble friend for that reply, may I ask whether the Government appreciate that the introduction of anything on these lines through Community legislation into the company law of this country would have drastic and difficult consequences including, inter alia, the revival of the discredited Bullock recommendation?
§ Lord TREFGARNEMy Lords, we shall ensure that our preference for the voluntarist approach in this matter is conveyed to those preparing the directive.
Lord BRUCE of DONINGTONMy Lords, is the noble Lord aware that, notwithstanding the fact that this draft has still to be considered by the European Parliament, it has been found in practice that after emerging from that examination it very rarely differs substantially from the original draft? Will the noble Lord give the House the assurance that detailed discussions will be held with all those affected in the United Kingdom, including not only the legal and accounting professions, but industry itself?
§ Lord TREFGARNEMy Lords, the Government will take steps to ensure that 1591 they are acquainted with the views of those who may be affected by the directive and will take into account those views when forming their own views to present to the Council of Ministers.