Company Law Reform Bill

moved Amendment No. 218:"After Clause 204, insert the following new clause—" ““CASES WHERE APPROVAL IS REQUIRED UNDER MORE THAN ONE PROVISION (1)   Approval may be required under more than one provision of this Chapter. (2)   If so, the requirements of each applicable provision must be met. (3)   This does not require a separate resolution for the purposes of each provision.”” The noble Lord said: Chapter 4 of Part 10 of the Bill requires approval of the members to certain transactions with directors. The transactions covered are long-term service contracts, substantial property transactions, loans, quasi-loans, credit transactions and payments for loss of office. It is possible that a transaction may consist of one or more of these, or all at the same time. If so, each set of rules should apply unless otherwise provided. So, for example, if the transaction involves both a loan and a substantial property transaction, approval should be required under Clause 173 and Clause 180, unless in each case a relevant exemption applies. On the other hand, if the transaction is both a payment for loss of office and a substantial property transaction, Clause 173(6)(b) provides that the rules on substantial property transactions should not apply, but the rules on payment for loss of office should apply in the usual manner. Amendment No. 218 provides for a new clause that will make it absolutely clear that where approval for a transaction is required under more than one set of rules in Chapter 4, all relevant sets of rules should apply unless otherwise provided. I beg to move.