Corporate Insolvency and Governance Bill

Baroness McIntosh of Pickering Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 9th June 2020 Lords Chamber

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I congratulate my noble friend on introducing the Bill. I welcome the thrust of the Bill—bringing forward measures to support company rescue—particularly in the current circumstances of the Covid-19 pandemic and its dreadful impact on business.

Although I overwhelmingly support the Bill, I will raise a number of issues, particularly as regards the role of the monitor and areas where it may be vague and uncertain as to how provisions will apply in practice. I will take the opportunity to ask the Minister: for what reason have individual insolvencies been excluded from the scope of the Bill? Can he clarify the Government’s position regarding the monitor? How independent will that person be of the company and its directors?

More specifically, will the Government look more closely at the role of the monitor and consider introducing further safeguards to ensure their independence? In particular, could he look at the appointment and duties of the monitor? Should they outline and introduce a statement of how they understand the company intends to use the moratorium to rescue the company? Should the monitor be asked to provide a progress report? Should they be required to file any relevant correspondence between the company directors and the monitor with the court? Finally, would it be appropriate for the monitor to submit a statement of their independence from the company, with a test of that independence?

In spite of these comments, I wish the Bill a fair wind and would be grateful if the Minister could explain, particularly regarding its permanent measures, the monitor’s role in reducing financial distress of companies with the introduction of a moratorium.