Company Law Reform Bill [HL]

moved Amendment No. 138:"Page 64, line 32, after ““a”” insert ““person acting as a””" The noble Lord said: Amendments Nos. 138 and 139 are needed to protect third parties. They cannot be expected to know whether a purported director is what he or she appears to be. This clause means that the company cannot avoid the consequences when a person who is not entitled to do so acts as a director; the company cannot rely on that person’s lack of entitlement to get out of its obligations to a third party. It also provides companies with an incentive to make sure that those individuals who lose their entitlement to act as directors in fact stop doing so. I beg to move. On Question, amendment, agreed to.