HL Deb 29 June 1995 vol 565 cc916-7

6.40 p.m.

Lord Inglewood rose to move, That the draft regulations laid before the House on 6th June be approved [22nd Report from the Joint Committee].

The noble Lord said: My Lords, I trust that this matter may he rather less contentious.

Section 13 of the Deregulation and Contracting Out Act 1994 introduced a new company law procedure. It allowed directors of non-trading private companies which had reached the end of their useful lives to apply for them to be struck off the register of companies and dissolved. This new procedure will come into force on 1st July for companies registered in Great Britain. A fee will need to be paid to recover the costs incurred by Companies House in processing the applications. The purpose of these regulations is to prescribe that the fee will be £10 in respect of the making of a striking-off application.

To apply, directors have to fill in a simple form and send it to Companies House. They must also copy the completed form to anyone with an interest in or dealings with the company. Unless there are good reasons why the company should not be struck off the register, it will he dissolved within a matter of a few months.

The new procedure offers a simple, inexpensive and swift way for private companies which are no longer needed to terminate their affairs. They will be dissolved, thus relieving their directors of obligations under the Companies Act which are no longer necessary or appropriate. For example, it will save the costs of preparing statutory accounts and, where necessary, having them audited.

In return, the procedure contains certain safeguards for those dealing with or involved in the company. As I said, directors must send copies of the application and anyone may object to the application by showing the registrar that there is good reason for the company not to be struck off. A good reason might be that the company is still trading or that a creditor is taking steps to recover a debt.

Processing the application will involve Companies House in staff and computer costs and relevant overheads. We propose to set a fee of £10 to cover those costs. Directors will incur other costs in making the application; for example, copying and sending the completed application form to anyone with an interest in or dealings with the company. They may also choose to seek professional advice although Companies House is providing comprehensive guidance notes to assist. I am confident that the fee is reasonable and will not deter applicants. I commend the regulations to the House. I beg to move.

Moved, That the draft regulations laid before the House on 6th June be approved [22nd Report from the Joint Committee].—(Lord Inglewood.)

Baroness Turner of Camden

My Lords, the Minister is quite correct in his assumption that in relation to this instrument, we have no objections to raise. It is entirely non-controversial.

On Question, Motion agreed to.

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