§ 167 Insert the following new clause—
§ Increase of limits on certain exemptions.
§ . Part X of the Companies Act 1985 (enforcement of fair dealing by directors) is amended as follows —
- (a) in section 332(1)(b) (short-term quasi-loans) for "£1,000" substitute "£5,000";
- (b) in section 334 (loans of small amounts) for "£2,500" substitute "£5,000";
- (c) in section 338 (4) and (6) (loans or quasi-loans by money-lending company) for "£50,000" substitute "100,000".'.
§ Lord TrefgarneMy Lords, I beg to move that the House do agree with the Commons in their Amendment No. 167.
The amendment would have the effect of raising certain limits (calculated on an aggregated basis) on the loans and quasi-loans that may be made by a company either to one of its own directors or to one of the directors of its holding company. It would also have the effect of raising the limit (on an aggregated basis) for loans or quasi-loans that can be made by a money-lending company to one of its directors as well as raising the limit on the guarantees which can be given by such companies to their directors in respect of such loans or quasi-loans.
The present limits on the transactions that are dealt with in this amendment have not been changed since 1980. As a consequence, some updating is required to compensate for the effects of inflation and, in carrying out that revision, we have taken the opportunity to go a little beyond what is immediately necessary in order to ensure that they do not have to be changed again in the foreseeable future. I hope that those sensible provisions commend themselves to your Lordships.
Moved, That the House do agree with the Commons in the said amendment. —(Lord Trefgarne.)
§ Lord MonsonMy Lords, I do not have the Companies Act 1985 in front of me. Will the Minister say whether the omission of the pound sterling sign in front of the figure of 100,000 in the last line of the amendment is deliberate or accidental?
§ Lord TrefgarneMy Lords, everything we do is deliberate.
On Question, Motion agreed to.