Company Law Bill [HL]

moved Amendment No. A109:"Page 285, line 20, leave out ““give instructions”” and insert ““exercise his rights””" The noble Lord said: The purpose of the amendment is to clarify the position of the rights of existing shareholders in respect of any future regulations on the transfer of securities. As the Committee will be aware, Clause 586 extends the scope of regulations on the transfer of securities without a written instrument that can be made under Section 207 of the Companies Act 1989. Subsection (4) offers protection to existing shareholders of securities that any future regulation should not prevent them from having their name entered on the company’s register of members or to give instructions as to the disposal of their securities. The purpose of the amendment is that, instead of the reference to a beneficial owner ““giving instructions”” about securities, it would be more appropriate to refer to the beneficial owner not being prevented from exercising his rights in relation to those securities. I beg to move.