Company Law Reform Bill [HL]

moved Amendment No. 76:"Page 31, line 31, leave out subsection (3)." The noble Lord said: Amendment No. 76 relates to the clause dealing with appeal from the adjudicator’s decision. This issue has been of concern to the Confederation of British Industry. Clause 74(3) provides that, in the event of an appeal upholding an application, the effect of the adjudicator’s decision is to be suspended. Therefore, until the appeal process is completed, the respondents will be free to use the name that was previously declared to be offending. This is surely an incentive to companies not only to appeal but to drag out any such appeal for as long as possible and continue trading under the name, possibly cashing in on another company’s goodwill or causing further damage to the goodwill of that company and its general prosperity. Instead, in the event of such an appeal, it should be open for the respondents to apply for a court order suspending the initial adjudicator’s order until the appeal is decided. The amendment would remove the automatic suspension, thereby minimising the incentive to pursue a vexatious or frivolous appeal. I beg to move.