Company Law Reform Bill [HL]

moved Amendment No. 157:"Page 126, line 19, leave out ““10%”” and insert ““the required percentage””" The noble Lord said: My Lords, in moving Amendment No. 157, I shall speak also to Amendments Nos. 158 and 159. These amendments would reduce the threshold for private company members requiring a general meeting from 10 per cent to 5 per cent of the paid-up capital or voting rights. The reduced threshold would apply, first, only to private companies and, secondly, for up to one meeting only within any 12-month period. In Committee, the noble Lord, Lord Hodgson, sought to reduce the bar required for calling a general meeting from members holding 10 per cent to 5 per cent of paid-up capital or voting rights. The noble Lord argued that in the absence of a statutory annual general meeting for private companies, it should be easier than at present for shareholders to call a general meeting as the only means of holding the directors to account. We agree with the noble Lord’s point, but are concerned that the amendment he has tabled would apply to all companies, public and private. We see no justification for imposing potentially significant administrative and cost burdens on public companies, when their statutory AGM provides an effective means for shareholders to have a voice in the company’s decision-making. We also want to avoid imposing burdens on private companies. A straight reduction to a 5 per cent threshold might result in their being required to hold more general meetings than at present. Therefore, we have tabled this amendment and we trust that noble Lords will find it a welcome response to their concerns. I beg to move.