Company Law Bill [HL]

moved Amendment No. A108:"Page 285, line 13, leave out subsection (3)." The noble Lord said: The amendments replace Clause 586(3) with a new clause inserted between Clauses 586 and 587 and make certain consequential changes. Their purpose is to address two separate points that have been raised with us relating to the power to designate which companies or shares are subject to any new dematerialisation arrangements by order rather than as part of the main regulations to be made under Section 207 of the Companies Act 1989 and Clause 586. The Delegated Powers and Regulatory Reform Committee pointed out that these orders, which may have a significant effect on the scope of the new paperless regime, should be made subject to parliamentary control. In subsection (4) of the proposed new clause, we have accepted its recommendation that the orders should be subject to the negative resolution procedure rather than no parliamentary procedure. On the other hand, the Law Society is concerned that if the new arrangements are compulsory, exceptions may need to be made in certain cases—for example, because of the requirements of US securities law. No doubt, given the international context and the complexity of some companies’ capital structures, there may be a number of respects in which the new arrangements have to be adapted or suspended in particular cases. The new clause will allow the secondary legislation to respond comprehensively and flexibly to such cases as they arise. I beg to move. On Question, amendment agreed to.