HL Deb 15 July 1996 vol 574 cc618-20
The Chairman of Committees (Lord Boston of Faversham)

My Lords, I beg to move that this Bill be now read a third time.

Moved, That the Bill be now read a third time.—(The Chairman of Committees.)

Lord Bruce of Donington

My Lords, I am sorry to delay the House on what I believe to be a comparatively minor matter, although it has the importance of appearing on your Lordships' Order Paper and it asks for the consent of your Lordships to pass it. But can the noble Lord give us some idea of what this Bill is about?

I observe that at paragraph (4) it says: Having regard to the fact that the area of operation of the Company is and has been for many years wholly in the Republic of France, certain advantages would accrue to the company if it were incorporated under the laws of the Republic of France instead of under the laws of England". We are talking at a time when the advantages of being in the United Kingdom, owing largely to the photogenic qualities of the Chancellor of the Exchequer, have been widely advertised. Therefore, it is a little unusual to find a company that wants to leave these shores.

This company is on the shipping and forwarding agency side of commercial transactions. It was incorporated in the United Kingdom in 1907. From the inquiries I have made it has net assets at the moment of between 50 million and 60 million dollars, which is not an inconsiderable amount. There may be a perfectly good reason why this company should decide to be incorporated in France. Can the noble Lord tell me what advantages are anticipated, because, as I say, they are mentioned in the Bill? In particular, are there any taxation implications in this matter, not only for the company itself but for the subsidiary companies and as regards the interests of the directors, the names of whom I have here and who appear to be associated with English companies or companies which have not yet applied to go abroad? These are Three Keys Properties Limited, Leasecon Engineering Associates Ltd., Five Oak Leisure Ltd., Climax Chemicals Ltd. and Tele-Units (Service) Limited.

As I say, I am quite sure that all is in order, but I would like to be reassured on the various matters that I have raised, following which I have no doubt that, unless there is something which obviously requires further inquiry, the House will be pleased to allow the matter to proceed in the normal manner.

The Chairman of Committees

My Lords, as I hope that your Lordships will know, I am always anxious to assist noble Lords, and not least the noble Lord, Lord Bruce of Donington. However, your Lordships will also know that I am bound by the practice and procedure of the House and the first point to which I ought to draw your Lordships' attention—quite unnecessarily, I am sure—is a point with which your Lordships will be familiar, not least because the noble Viscount the Leader of the House had occasion to remind your Lordships of it only last week. I refer to the fact that a Third Reading is to be taken formally and any debate which arises at that stage should take place on the Motion that the Bill do now pass.

There is a second procedural point to which I should draw your Lordships' attention. It will be less familiar to some of your Lordships than to others. It is a point which I had the occasion to draw to your Lordships' attention only a few weeks ago. I refer to the fact that the practice and procedure of your Lordships on private Bills—this is a private Bill—are such that if points are to be raised at various stages, notice is to be given and a sponsor appointed from the Back Benches.

As I have said, I am always anxious to try to assist if I can. Had such notice been given and had a sponsor been appointed, I am sure that the first thing that that sponsor would have noted was that he or she would not have been at all surprised had the noble Lord, Lord Bruce of Donington, wanted to raise a matter which has European implications, as has this Bill.

Had I been permitted by the rules of procedure of your Lordships' House to assist, I should have pointed out that the company has been incorporated in this country, but the whole of its business is, and has been for a very long time now, in France. Therefore, it is of assistance to the company and no doubt to its customers that that company should no longer be incorporated in this country but in France where it can carry out its practices all the more efficiently. As the noble Lord, Lord Bruce of Donington, who is a distinguished accountant, will know, there is no procedure under the United Kingdom Companies Acts for a company's incorporation to be transferred to another country. The Bill is needed to effect that transfer.

I hope that I have assisted to some extent, but I do not think that I should transgress upon your Lordships' sense of order by attempting to assist further. However, if there is any way in which I can help, I shall seek to do so outside the Chamber.

On Question, Bill read a third time.

The Chairman of Committees

My Lords, I beg to move that the Bill do now pass.

Moved, That the Bill do now pass.—(The Chairman of Committees.)

Lord Bruce of Donington

My Lords, I should like at once to apologise to the House and to the noble Lord the Chairman of Committees for having raised such a matter on Third Reading rather than on the Motion that the Bill do now pass. My curiosity has been perfectly well satisfied. I accept the noble Lord's rebuke, but I can assure him that next time I shall be spot on the procedure and that I may possibly require further information than the noble Lord found it proper to give this afternoon.

The Chairman of Committees

My Lords, I am much obliged to the noble Lord and I doubt not one word of what he has told your Lordships.

On Question, Bill passed.

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