HL Deb 09 November 1989 vol 512 cc1005-6

160 Clause 108, page 107, line 38, at end insert— 'The order bringing the above amendment into force may make such provision as appears to the Secretary of State appropriate as to the obligations of a person whose interest in a company's shares becomes notifiable by virtue of the amendment coming into force.'.

Lord Trefgarne

My Lords, I beg to move that this House do agree with the Commons in their Amendment No. 160. I wish to speak at the same time to Amendment No. 161. These amendments make two technical changes to Clause 108 which deals with the disclosure of interests in shares.

Subsection (2) of Clause 108 lowers the threshold for disclosure of interests in shares. The Law Society has expressed some doubt as to whether those persons holding between 3 per cent. and 5 per cent. when the provision is commenced will have to disclose at that time. Amendment No. 160 gives the Secretary of State the ability to make provision for such persons in the commencement order. It is the intention to require them to disclose subject to appropriate transitional arrangements.

Amendment No. 161 will require disclosure when an option to purchase shares is exercised. At present only the initial purchase of the option is notifiable. The Stock Exchange and the Law Society have suggested —and we agree —that the exercise of an option is an important matter which should be disclosed to the company.

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

On Question, Motion agreed to.