§ Mr. WatersonTo ask the President of the Board of Trade what steps are taken to maintain confidentiality when pre-publication copies of reports into the affairs of companies by inspectors appointed under section 432 of the Companies Act 1985 are provided to certain persons referred to in such reports; and what assessment he has made of their effectiveness.
§ Mr. Neil HamiltonThe Secretary of State has discretion under the legislation to provide copies of unpublished reports of inspectors to persons referred to in the report. When, in the interests of fairness, the Department exercises its discretion to do so, it requires those concerned, including advisers, to give strict undertakings to preserve the report's confidentiality. Where these undertakings exceptionally appear to have been breached, the Department has and will continue to take firm action. It may seek an injunction from the court to prevent further unauthorised disclosure. Where advisers are found to have breached undertakings, the Department will, where appropriate, pursue the matter with the professional body concerned. The Department has recently drawn one such case to the attention of the Law Society and it has concluded its proceedings, which are confidential, in favour of the Department.