Company Law Reform Bill [HL]

moved Amendment No. 334E:"Page 245, line 18, after ““being”” insert ““seriously””" The noble Baroness said: I shall move Amendment No. 334E and speak also to Amendments Nos. 334F and 334G which are in this group. Clause 512 contains new powers for members to raise audit concerns. The issue is primarily about how small shareholders can engage with companies in which they have invested. If large shareholders have concerns, there tend to be other forms of dialogue and avenues for inquiry other than the annual accounts meetings that are rarely attended by the larger shareholders. It is in that light that we have tabled the amendments in this group, which have been suggested by the UK Shareholders Association. The UKSA is concerned that companies may use the threat of claiming that the rights are being abused to discourage requests for publication, because those making the requests might have to end up paying both sides’ costs under subsection (6). For that reason Amendments Nos. 334E and 334G make it clear that the court has to be satisfied that the rights are being ““seriously abused”” before the court will agree to non-publication of the concerns under subsection (5) or before the court awards costs under subsection (6).