§ Mr. Robert B. Jonesasked the Secretary of State for Trade and Industry what progress has been made by the Companies Registration Office to improve the reliability of the Register of Companies.
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§ Mr. HowardAs was reported to the Public Accounts Committee on 20 June 1984, the Registrar of Companies has been aiming to achieve compliance by 80 per cent. of the companies on the register by the middle of 1986. I reported to the House on progress on 11 December 1985.
At 30 June 1986, 88 per cent. of active companies were up to date with their filing of annual returns and 84 per cent. up-to-date with accounts. These figures compare with 52 and 45 per cent. respectively at the end of May 1984.
79.4 per cent. of active companies were compliant for both returns and accounts (compared with 41.0 per cent. in May 1984). A further 12.2 per cent. had been in default for less than six months.
I am pleased with the progress that has been made. I have asked the Registrar of Companies to maintain the pressure on compliance and to try to raise further the level of it. This will not be easy—it will mean a good deal of further hard work for him and his staff.
However, an up-to-date register is vital if creditors, potential investors and others who have dealings with companies, are to have the information they need to take soundly based decisions. The public availability of the data is also an important deterrent to fraud.
The registrar could not have made the progress he has without the co-operation of the business and professional community, which I gratefully acknowledge. I am sure that this co-operation will continue as the registrar and his staff maintain their efforts.