Company Law Reform Bill [HL]

With respect, I think that the noble Lord is taking a perfectly accurate but theoretical view of this matter. Most shareholders receive the annual report over their cornflakes and look through it. If it was just a case of the auditor being removed, they might turn to their toast and marmalade, but if the report said that it was for this or that reason, they might say, ““That’s something rather special and I need to get involved in this””. It is a question of transparency and of signalling the significance of what is being proposed from the point of view of the auditor and of the company to the great benefit of the shareholder.