HL Deb 15 July 1991 vol 531 c61

6.28 p.m.

Lord Henley rose to move, That the draft regulations laid before the House on 19th June be approved [23rd Report from the Joint Committee].

The noble Lord said: My Lords, the draft regulations laid before the House are made under Section 135 of the Companies Act 1989. They amend those sections of the Companies Act 1985 which provide for the imposition of orders, either by the Secretary of State or by the court, restricting rights over shares.

These regulations are intended to ensure that the courts and the Secretary of State have the flexibility to make orders in such a way that innocent third parties will not be affected by the restrictions on the shares. I beg to move.

Moved, That the draft regulations laid before the House on 19th June be approved [23rd Report from the Joint Committee].—(Lord Henley)

Baroness Turner of Camden

My Lords, I thank the Minister for his usual lucid explanation of the regulations. This seems to be another case in which quite important matters are coming before the House in the form of regulations rather than primary legislation. Perhaps the Minister will deal with that point. It is not the first time that that issue has been raised not only on these Benches but also from other parts of the House. Other than that, I do not oppose the order.

Lord Henley

My Lords, the noble Baroness was right in saying that there has been opposition to such orders previously. The order was not made under a Henry VIII power. She will be aware that I have had opposition from behind me to the alleged use of Henry VIII powers. There is a power to make this change. It will take considerable time to introduce primary legislation. The secondary power exists and therefore we believe that it is right to make the regulations.

On Question, Motion agreed to.