HL Deb 07 November 1989 vol 512 cc615-6

45 Clause 18, page 34, line 10, leave out '258' and insert `Schedule 10A'.

46 Clause 19, page 34, line 14, leave out 'sections are' and insert 'section is'.

Lord Strathclyde

My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 45 and 46 en bloc. I shall speak also to Amendments Nos. 338, 345, 357 and 372A.

These amendments make one change to the definition of a subsidiary undertaking and related changes to the interpretation provisions presently found in Section 258 and now recast into a new schedule. Clause 19 and related provisions are a technical and complex part of the Bill, but nonetheless important since they determine whether or not a body falls to be treated as a subsidiary undertaking for the purposes of the accounting provisions in the Companies Act. A number of detailed points on the provisions were discussed when the Bill was last before the House.

The amendments remove ambiguities and close loopholes in the definition of a subsidiary undertaking to prevent companies from excluding bodies which they control from the consolidated accounts without justification. In doing that, care is taken not to bring within the definition bodies which quite rightly should not be caught. I recognise that it is not easy to meet those twin objectives perfectly; but the clause, with those changes, goes a long way to meeting that objective. The result is certainly a significant improvement to an important provision within the Bill.

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

Lord Lloyd of Kilgerran

My Lords, I thank the noble Lord quite simply but sincerely for his explanation because it helps to define subsidiary undertakings.

On Question, Motion agreed to.

7 p.m.