HL Deb 27 March 1980 vol 407 cc1056-7

198 After Clause 45, insert the following new Clause: Relevant amounts.

.—(1) The following provisions of this section shall have effect for the purpose of defining the amounts relevant for determining whether any transaction or arrangement (a "proposed transaction or arrangement") falls within the exception provided by subsection (3)(a) or (4)(c) or (d) of section (Exceptions from s. (Prohibitions of loans, etc., to directors and connected persons)) above, and for that purpose" the relevant exception"in subsection (2) below means that exception.

(2) The relevant amounts in relation to a proposed transaction or arrangement are—

  1. (a) the value of the proposed transaction or arrangement;
  2. (b) the value of any existing relevant arrangement falling within subsection (3) or (4) of section (Prohibitions of loans, etc., to directors and connected persons) and entered into by virtue of the relevant exception by the company or by a subsidiary of the company or, where the proposed transaction or arrangement is to be made for a director of its holding company or a person connected with such a director, by a subsidiary of its holding company;
  3. (c) the amount outstanding under any other relevant transaction made by virtue of the relevant exception by the company or by a subsidiary of the company or, where the proposed transaction or arrangement is to be made for a director of its holding company or a person connected with such a director, by a subsidiary of its holding company.

(3) For the purposes of this section, a transaction is relevant if it was made

  1. (a) for the director for whom the proposed transaction or arrangement is to be made or for any person connected with that director; or
  2. (b) where the proposed transaction or arrangement is to be made for a person connected with a director of a company, for that director or any person connected with him;
and an arrangement is relevant if it relates to a relevant transaction.

(4) For the purposes of this section, a transaction entered into by a company which is (at the time that transaction was entered into) a subsidiary of the company which is to make the proposed transaction or is a subsidiary of that company's holding company, is not a relevant transaction if at the time of the determination referred to in subsection (1) above it no longer is such a subsidiary.

(5) The amount outstanding under any transaction within subsection (2)(c) above is the value of the transaction less any amount by which that value has been reduced.

7.2 p.m.

Lord LYELL

My Lords, I wonder whether it would be for the convenience of the House—and it might save a lot of time—if I did not make lengthy speeches on those Commons amendments to which amendments have not been tabled by your Lordships. I wonder whether your Lordships would care to proceed in this way. There is one amendment, No. 231, on which I have a note. None of your Lordships wishes to table amendments to No. 198. Can we propose it formally?

Lord MISHCON

My Lords, I am sure it would meet with the convenience of the House if the noble Lord proceeded in that way. We can always rely on Ministers to point out whether any amendment that they move on which there is not an amendment is other than a purely textual or slight one. So far as I and my noble friends are concerned, I think this is a most convenient procedure which will lead to the expediting of business.

Lord LLOYD of KILGERRAN

My Lords, I agree that this will be a useful procedure. I can give an undertaking not to speak to any amendment on which I have not produced an amendment to the Commons amendment.

Lord LYELL

My Lords, I am grateful for that. I beg to move that this House doth agree with the Commons in their Amendment No. 198.

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

On Question, Motion agreed to.