National Security and Investment Bill

Baroness Watkins of Tavistock Excerpts

Report stage
Thursday 15th April 2021 Lords Chamber

I take the example of where a person acquires preferred shares which provide the ability to prevent a resolution of that class of shares in order to protect their investment or minority rights and does not provide the ability to vote on all or substantially all matters at a general meeting. This would not constitute an acquisition of control within the meaning of Clause 8(6), as subsection (7) sets out that a reference to voting rights is to the rights conferred on shareholders in respect of their shares to vote at a general meeting of the entity on all or substantially all matters. I emphasise to my noble friend that limited veto rights are unlikely—in our view—to meet that threshold so their acquisition would not be notifiable or, indeed, a trigger event at all. I hope that reassures my noble friend and that this amendment can therefore be withdrawn.

[The Deputy Speaker (Baroness Watkins of Tavistock) (CB)]

I have received a request to ask a short question for elucidation from the noble Lord, Lord Leigh of Hurley.

[Lord Leigh of Hurley (Con)]

I suppose I should say that modesty had forbidden me from putting my name down for this group. I wanted to have a point clarified and to thank the Government for listening to the Back-Benchers. I think it was fairly random that I took the 15% point: I cannot remember how it was allocated. I thank the Minister for listening to the many people who made representations.

In respect of the point from the noble Lord, Lord Lansley, about the fourth case—Clause 8(8)—we debated this and I think I raised the question at the time as to what influencing the policy of the entity means. To return the compliment to the Government, I agree with them in this instance because if we had Clause 8(8), I can see a lot of discussion and debate as to the meaning of enabling a person to materially influence “the policy”. We discussed the meaning of this at length. I return the compliment and agree with my noble friend the Minister.

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[The Deputy Speaker (Baroness Watkins of Tavistock) (CB)]

We now come to the group beginning with Amendment 6. Anyone wishing to press this, or anything else in this group, to a Division, must make that clear in debate.

Amendment 6

Moved by