Companies (Disclosure of Address) (Amendment) Regulations 2018
(Limited Text - Ministerial Extracts only)
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Lord Henley
That the draft Regulations laid before the House on 22 February be approved.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)
My Lords, these regulations will make it easier for people to protect information about their residential address on the companies register. Prior to the Companies Act 2006, directors’ residential addresses were generally publicly available on the register. The 2006 Act changed the general position by protecting this information from disclosure. However, this change did not apply retrospectively.
Regulations made in 2009 allow people to apply to the Registrar of Companies to make an address unavailable to the public in certain circumstances. An address can only be made unavailable where there is a serious risk of violence or intimidation to those living at the address, this risk arises because of the activities of the company and the information was filed with the registrar after 1 January 2003. These restrictions mean that residential address information cannot be protected if the information was filed before 2003, even if the person is at serious risk of violence or intimidation because of the company’s activities. Nor can the information be protected if the risk of violence or intimidation does not come from the company’s activities—for example, someone in the public domain who may attract abuse—or where someone is at risk of identity theft and fraud rather than violence or intimidation.
Since the companies register was made free to search online in 2015, it is much more widely used than ever. This has increased concerns about the availability of personal information. The draft regulations address these concerns, first by allowing applications where the information was filed before 2003. Most of this information is kept non-digitally; for example, on microfiche. When the original regulations were drafted in 2009, it was thought that it would not be possible to redact such non-electronic information without risking damage to the public record. However, subsequent improvements in technology mean that this is no longer the case. There is therefore no need to retain this restriction.
The regulations also remove the requirement in regulation 9 of the 2009 regulations to show a serious risk of violence or intimidation because of the company’s activities. This is consistent with the general approach taken by the Companies Act 2006 that the registrar must protect directors’ residential addresses.
The draft regulations do, however, retain this test for applications made under regulations 10 and 11 of the 2009 regulations. Regulation 10 allows applications from companies to protect the residential address information of all their members. Removing the test for such company applications could result in large-scale redactions of historic information, potentially involving thousands of members’ addresses for larger companies. While we do not consider that this is justified, an individual member will be able to apply under new regulation 9 to have their residential address suppressed without having to show any risk of harm. We are also retaining the test for applications under regulation 11 from people who register a charge, as the registrar receives very few applications and no concerns have been raised about the test in this context.
People who are legally required to maintain a current address on the register—for example, current directors of live companies—will have to provide a service address as part of their application. This will be publicly available on the register in place of their residential address. However, people who are not subject to this requirement—such as former directors of dissolved companies—will not need to provide a service address. Instead, their residential address will be partially suppressed, leaving the first half of the postcode. Public authorities—such as a police force, the Insolvency Service and the Pensions Regulator—will still be able to obtain information about a person’s residential address from the registrar, even where that information is not available to the public on the register.
We have not consulted in this instance. A number of cases have been raised recently with my department where the people involved are at risk of violence or intimidation yet cannot have their address information protected. Delaying action to consult would increase the risk that people may be caused actual harm. I believe that not consulting is justified in this case, particularly as the regulations apply the principle which has been in place since 2009 that residential address information should not be shown publicly on the register.
It is important that the information on the companies register is of real practical use to those who wish to find out information about a company. At the same time, the information should not become a tool for abuse by exposing people to a risk of harm. These regulations strike an appropriate balance between transparency and the protection of individuals, and I commend them to the House.
Lord Henley
My Lords, I am sorry that we could not continue with the same attitude as we had to the previous order, other than in relation to the noble Lord, Lord Stevenson. I am grateful that the noble Lord, Lord Fox, described this as a pragmatic balance. That is exactly what we have tried to achieve in providing protection for the individual but still making sure that certain public things continue to be public.
The noble Lord, Lord Stevenson, objected to the lack of consultation for something as important as this, saying that there was a lack of consultation and a lack of an impact statement. I will write to him in further detail on the lack of consultation but I assure him that we have received a number of inquiries— around 3,000, I am told. As the Minister who deals with letters from Members of another place on their constituents’ concerns, I have had to sign a number of letters relating to their concerns over not being able to get something removed. It is depressing that I often have to say, “I’m terribly sorry, there is nothing we can do at this stage”, so I was grateful that we could do something quickly and without the necessary consultation. Since individual companies are not required to do anything—or stop doing anything—an impact statement is not necessary. All the regulations do is give people the option of applying to have residential address information suppressed, if they so choose. There is no impact on Companies House, as the application fee will cover the costs of processing the application. In those circumstances, an impact assessment—whether coloured in for the noble Lord or in black and white—is not necessary.
The noble Lord, Lord Stevenson, picked up on the problem with microfiches. I understand that deleting something from a microfiche can affect it. Now that one can move things on to CDs, the process is somewhat easier, but the important thing is that the microfiches will be kept. From a historical point of view, we will still keep records from the past. I will write to him in greater detail about public authorities and how they get appropriate authority, but that will not change as a result of this order. The issue—the mere fact that it comes in immediately—does not affect companies and there will be no burden, so the lack of a commencement date is not a problem. As always, I note what the noble Lord, Lord Stevenson, said about the desirability of sticking to common commencement dates and will try to stick to that in future.
The noble Lord, Lord Campbell-Savours, asked rather a technical question about the category relating to constables in a police force. Under Regulation 5 of the 2009 regulations, on disclosing a residential address to a credit reference agency, one of the grounds for applying to the registrar is that a person is or has been employed by a police force. We are concerned that this may not cover constables because they are technically officeholders rather than employees. The draft regulations merely make it clear that police constables may apply to prevent disclosure under Regulation 5.
Lord Henley
That would be a matter for the police constables themselves. It would probably be best, rather than ad-libbing an answer, if I wrote in greater detail to the noble Lord on that point.
Finally, the noble Lord, Lord Fox, asked about the criteria to be used by Companies House in considering this. The regulations merely allow a person to apply to have their residential address and information suppressed without having to give any reason. The criteria are not relevant in this case; they do not have to give a reason for their application, whereas in the past they did. That therefore simplifies matters and, I hope, continues to meet that pragmatic balance that the noble Lord so warmly welcomed. I hope that deals with all the points that were made.
Lord Henley
I will possibly add this to my response to the noble Lord, but I suspect that giving half a postcode provides, as it were, some information without giving details. In other words, if someone added CA6 to my name one would know that I lived somewhere not so far from the noble Lord in Cumberland, but it would not say precisely where I live because it would not give the address. As the noble Lord, Lord Stevenson, said, there are other ways of finding out people’s addresses. We are just trying to provide appropriate protection.
Lord Henley
I will write to the noble Lords, Lord Campbell-Savours, Lord Fox and Lord Stevenson. I will make sure that a copy of the letter is placed in the Library. With those explanations and the general support of the House, I commend the regulations to the House.