Economic Crime and Corporate Transparency Bill

Debate between Lord Clement-Jones and Lord Trevethin and Oaksey

Committee stage
Monday 27th March 2023 Grand Committee

[Lord Trevethin and Oaksey (CB)]

I was going to make a similar point. Obviously, there are a number of different classes of shares; as it stands, the amendment is, with respect, a little unclear as to how it would operate in relation to voting shares, non-voting shares, preference shares, class A shares, class B shares and so forth. That would need to be tightened up.

On the amendment creating a dangerously onerous regime, it occurred to me that a further aspect of its onerousness relates to what the registrar is required to do pursuant to this amendment. It currently states that the registrar must

“verify the number of shares the person claims to control.”

If taken literally, that might require the registrar to look quite carefully at what is being said about the slightly tricky concept of control, which is not quite the same as ownership. That might need to be reconsidered in due course, or perhaps watered down or removed.

[Lord Clement-Jones (LD)]

Noble Lords, including my noble friend Lady Bowles, have usefully teased out some of the principles that we need to adopt and the fact that we are not quite there in terms of trying to find a relatively simple formula that is not unduly onerous. They also point out that the current provisions are not adequate. Indeed, it is quite interesting that we have two separate groups here, in coming to government Amendment 42. This whole area of persons with significant control and what the noble Lord, Lord Agnew, set out in terms of shareholders holding more than 5% of shares demonstrate that we need a greater level of transparency.

I very much hope that the Minister will come back in the spirit in which these proceedings have been conducted and say, “Yes, we think there is more to be done and that it is possible to get over the SME issue that has been raised by a number of noble Lords. However, we think in principle that it is desirable to go down this sort of route that has been suggested.” I hope that we will get a positive reply from the Minister and an undertaking to take this forward in the way that the noble Lord, Lord Vaux, suggested.