Company Law Reform Bill [HL]

My Lords, I am grateful to all who have participated in this debate. The noble Viscount, Lord Bledisloe, was kind enough to fly air cover for me earlier this afternoon. However, on this matter his analysis of the relationships is incorrect. First, the shareholding and the relationship you have is with the company—the vehicle to which you are entrusting your investment. Secondly, on shopping around, there is the issue of equality of arms that the noble Lord, Lord Razzall, spoke about. When you have your ISA, it is suggested that you will be able to shop around to find somebody who will do that for you, but they are not available. As an ISA and PEP holder, I have never had an offer of information about any company that I invest in at all. I am grateful to the right reverend Prelate the Bishop of Chester for reminding us about responsibilities as well as rights. He is absolutely right on that. I am also grateful to my noble friend Lord Sanderson for his support. The Minister has been persuasive on many occasions, stretching back to January, but this afternoon, as he skates across this particular pond, the ice is cracking beneath his feet. He says that it will be very expensive, yet the Bill—as he rightly points out—allows for electronic communication if companies choose to use it. The savings if the companies choose to go electronic will wildly outweigh any costs that they have in enfranchising their nominees. To say that the provisions of Clause 303 will provide the choice to which small shareholders can adjust does not focus on the reality of events in the marketplace. As we have said at Second Reading and indeed throughout, we need an opt-in system. Not everyone has to have it; many shareholders may choose not to have it. However, the company should say to them once a year, ““Do you wish to receive this information?”” At that point, they can decide and if they do not want to have large amounts of paperwork delivered to them, then that is fine—but the option should be there. That golden thread is important to our shareholding democracy. I am astonished that the Minister, who is normally so open-minded and commercial on these matters, really cannot see that that thread exists. His final attempt was to fall back on the voluntary system, which has not worked well enough. If we were all getting offered information about our ISAs and PEPs then maybe we would be inclined to think again. However, we have to strike a blow here for the small shareholder, the private shareholder and the shareholding democracy. I wish to test the opinion of the House. On Question, Whether the said amendment (No. 59) shall be agreed to? Their Lordships divided: Contents, 153; Not-Contents, 146.