HL Deb 07 November 1989 vol 512 cc640-1

103 Clause 48:

Leave out Clause 48 and insert —

'Power to make consequential amendments.

(1) The Secretary of State may by regulations make such amendments of enactments as appear to him to be necessary or expedient in consequence of the provisions of this Part having effect in place of section 389 of the Companies Act 1985.

(2) That power extends to making such amendments as appear to the Secretary of State necessary or expedient of—

  1. (a) enactments referring by name to the bodies of accountants recognised for the purposes of section 389(1)(a) of the Companies Act 1985, and
  2. (b) enactments making with respect to other statutory auditors provision as to the matters dealt with in relation to company auditors by section 389 of the Companies Act 1985.

(3) The provision which may be made with respect to other statutory auditors includes provision as to—

  1. (a) eligibility for the appointment,
  2. (b) the effect of appointing a partnership which is not a legal person and the manner of exercise of the auditor's rights in such a case, and
  3. (c) ineligibility on the grounds of lack of independence or any other ground.

(4) The regulations may contain such supplementary, incidental and transitional provision as appears to the Secretary of State to be necessary or expedient.

(5) The Secretary of State shall not make regulations under this section with respect to any statutory auditors without the consent of —

  1. (a) the Minister responsible for their appointment or responsible for the body or person by, or in relation to whom, they are appointed, or
  2. (b) if there is no such Minister, the person by whom they are appointed.

(6) In this section a "statutory auditor" means a person appointed auditor in pursuance of any enactment authorising or requiring the appointment of an auditor or auditors.

(7) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuant of a resolution of either House of Parliament.

Power to make provision in consequence of changes affecting accountancy bodies.

(1) The Secretary of State may by regulations make such amendments of enactments as appear to him to be necessary or expedient in consequence of any change of name, merger or transfer of engagements affecting—

  1. (a) a recognised supervisory or qualifying body under this Part, or
  2. (b) a body of accountants referred to in, or approved, authorised or otherwise recognised for the purposes of, any other enactment.

(2) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.'.

Lord Strathclyde

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 103. Associated with Amendment No. 103 are Amendments Nos. 103A and 103B which I dare say the noble Lord will move in a moment.

The amendment concerns the revision of provisions in other enactments which define the right to audit or carry out other accountancy functions in specified circumstances. In almost all cases eligibility is linked to the eligibility to conduct company audits which is dealt with in Section 389 of the Companies Act 1985. Since the Bill repeals Section 389 and replaces it with a new system, consequential changes need to be made to the other enactments. In the Bill as it left your Lordships' House, Schedule 12 contained some of the amendments to other Acts consequential on the provisions of Part II. Later amendments remove Schedule 12 and the amendment replaces it with a power to make all the necessary consequential amendments by regulations.

Moved, That the House do agree with the Commons in the said amendment. —(Lord Trefgarne.)