HL Deb 21 October 2004 vol 665 cc961-2

(1) Subsections (2) and (3) impose disclosure requirements in relation to a directors' report under section 234 in respect of a financial year.

(2) If—

  1. (a) at the time when the report is approved under section 234A, any qualifying third party indemnity provision (whether made by the company or otherwise) is in force for the benefit of one or more directors of the company, or
  2. (b) at any time during the financial year, any such provision was in force for the benefit of one or more persons who were then directors of the company,
the report must state that any such provision is or (as the case may be) was so in force.

(3) If the company has made a qualifying third party indemnity provision and—

  1. (a) at the time when the report is approved under section 234A, any qualifying third party indemnity provision made by the company is in force for the benefit of one or more directors of an associated company, or
  2. (b) at any time during the financial year, any such provision was in force for the benefit of one or more persons who were then directors of an associated company,
the report must state that any such provision is or (as the case may be) was so in force.

(4) Subsection (5) applies where a company has made a qualifying third party indemnity provision for the benefit of a director of the company or of an associated company.

(5) Section 318 shall apply to—

  1. (a) the company, and
  2. (b) if the director is a director of an associated company, the associated company,
as if a copy of the provision, or (if it is not in writing) a memorandum setting out its terms, were included in the list of documents in section 318(1).

(6) In this section— associated company" and "provision" have the same meaning as in section 309A; and qualifying third party indemnity provision" has the meaning given by section 309B(1).

(2) In section 310 of that Act (provisions exempting officers and auditors from liability), the following provisions cease to have effect—

  1. (a) in subsection (1), the words "any officer of the company or", and
  2. (b) in subsection (3)—
  1. (i) the words "officer or" (in both places), and
  2. (ii) the words from "section 144(3)" to "nominee) or";
and in the side note, for "exempting officers and" substitute "protecting"."

2 Insert the following new Clause—