HL Deb 07 November 1989 vol 512 cc587-8

10 Clause 6, page 11, line 33, at end insert— '(3A) Where advantage is not taken of subsection (3), that fact shall be stated in a note to the company's annual accounts.'.

Lord Strathclyde

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 10. Clause 6 of the Bill includes a provision re-enacting existing exemptions from disclosure of the names of certain subsidiaries and related undertakings which date back to the Companies Act 1967 and were introduced by the then Labour Administration.

This amendment would require a company to disclose in its accounts the fact that it had taken advantage of those exemptions from disclosure. The Government brought it forward in response to a commitment given in another place to the honourable gentleman the Member for Norwich, South, who moved a similar amendment in the Standing Committee. We have considered this carefully in the light of our obligations under the fourth and seventh company law directives. The amendment is needed to give proper effect to Article 45(1)(b) of the fourth directive and Article 35(1)(b) of the seventh directive. I beg to move.

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

On Question, Motion agreed to.