§
162 Clause 108, page 108, line 8, at end, insert 'and
(e) the provisions as to company investigations (section 212);'.
§ Lord TrefgarneMy Lords, I beg to move that the House do agree with the Commons in their Amendment No. 162.
The amendment enables the Secretary of State to amend the provisions of Section 212 of the Companies Act 1985 by regulations subject to affirmative procedure. Section 212 permits companies to issue notices inquiring into the ownership of their shares. Failure to comply with such a notice is a criminal offence under Section 216 of the 1985 Act. The company may also apply under that section for an order freezing the shares.
As the noble Lords will recall from the Committee and Report stages, the Government do not at present see any need to amend Section 212. But we accept the argument that in the light of the importance of the section we should not have to wait until the next Companies Bill to correct any inadequacies that may become apparent (perhaps from a court decision). There was a consensus in favour of this argument and the amendment moved by a Back-Bench government supporter in another place.
Moved, That the House do agree with the Commons in the said amendment. —(Lord Trefgarne.)
On Question, Motion agreed to.