Company Law Reform Bill [HL]

I shall speak to the amendment and the clause-stand-part debate. The current rules on trading disclosures by companies are extremely complex. The rules that apply to GB companies are in Chapter 1 of Part 11 of the 1985 Act. Section 693 applies similar rules to overseas companies. However, there are separate rules in the Business Names Act 1985 which apply to every company that trades under a name other than that in which it is registered, even if the only difference is the omission of ““Plc”” or ““Limited””. These rules are not identical. The information required, and which premises and documents are covered, varies. As recommended by the Company Law Review, it is intended to use the powers conferred by this clause, and the similar power provided under Clause 666 for overseas companies, to replace all these disclosure rules with a single set of regulations. The noble Lord asked about regulations. Clause 82(5) provides that these will be subject to the affirmative resolution procedure. I move that this clause should stand part of the Bill. On Amendment No. 80, at present there are two legal requirements for signage that affect companies. Under the 1985 Act, a company is required to have a sign showing its registered name outside every place in which it carries on business, and under the Business Names Act 1985, if a company carries on business under a trading name that differs in any way from its registered name, it must have a sign showing its registered name and service address displayed in a prominent position to which customers and suppliers must have access in premises where it carries on business. We agree that these two requirements are excessive, but it is most certainly in the public interest that there should be some such requirement and that it be enforced. We agree with the Company Law Review that the detail of such requirements is better addressed in regulations. I am advised that the provision of documents or communications covers websites.