Company Law Bill [HL]

New Sections 151(5) and 151A(5) inserted by Clause 565 set out the offences that apply where there is a breach of the relevant prohibition on the giving of financial assistance. Those provisions do not increase the maximum sentence for the offence in question, where the maximum sentence for trial on indictment, being two years, remains the same. However, they increase the maximum sentence on summary conviction from six months to 12 months in England and Wales. The increase in sentencing powers for magistrates’ courts was effected by Section 154 of the Criminal Justice Act 2003, and the provisions in the Bill simply reflect that. We see no reason to limit the sentencing powers on summary conviction for company law offences, as there is no qualitative difference between those and any other criminal offence. As regards the apparent discrepancy between the sentencing powers in England and Wales and those in Scotland and in Northern Ireland, that is simply because criminal law sentencing is a devolved matter and the new sections reflect the difference in approach adopted in Scotland and Northern Ireland in relation to sentencing powers. Where you have devolution, there is not much value in arguing that one side should immediately align with the other, whichever way you want to argue it. It is the nature of devolution that people have differences. Finally, for the sake of completeness, I should add that Section 154 of the Criminal Justice Act 2003 has not yet been commenced. Accordingly, Clause 740 of the Bill makes transitory provision for any Companies Acts offences committed before its commencement, so that the maximum on summary conviction for an either way offence is six months. I hope that, in the light of my explanation of the reasons underlying the provisions relating to penalties in Clause 565, the noble Lord will agree to withdraw the amendment.