Economic Crime and Corporate Transparency Bill (Thirteenth sitting)

Gavin Newlands Excerpts

Committee stage
Thursday 17th November 2022 Public Bill Committees

[Seema Malhotra]

Clause 125 sets out a process for the registrar to confirm the dissolution of a limited partnership that the registrar has reasonable cause to believe has been dissolved. The registrar will be required to publish a notice stating that they believe the limited partnership is dissolved and asking for anyone to come forward with information to the contrary. While we support the clause, to enable the register to be kept up to date and for information on it to be as accurate as possible, we believe that certain elements of it could and should go further to make things more robust, and we have tabled amendments 163 to 165 to address that.

I will discuss amendments 163 and 164 together. Amendment 164 would amend the provisions setting out the registrar’s power to confirm the dissolution of a limited partnership by replacing “may” with “must”, such that the registrar must publish a dissolution notice and begin the dissolution process should they have reasonable cause to believe that a limited partnership has been dissolved. In short, the amendment would turn the registrar’s power to confirm the dissolution of a limited partnership, if they have reasonable cause to believe that it has been dissolved, from a power into a duty.

Amendment 163 is consequential on amendment 164. The explanatory notes to the Bill describe that

“there are currently thousands of limited partnerships on the register which the Registrar either knows or suspects are inactive.”

The registrar’s power to confirm the dissolution of these partnerships should not be optional, hence our amendments would make it a duty.

Amendment 165 would introduce a requirement that the limited partnership dissolution notice published in the Gazette must also be published on the registrar’s website and remain published for a minimum of 20 years. This would ensure that the notice of the partnership’s dissolution is transparently and clearly available to third parties who would benefit from such information. As Professor Berry set out in her written evidence:

“All dissolution/deregistration information should be shown on the Register and retained for at least 20 years. This is essential…so that third parties can fully examine the recent history of a particular participant or investigate suspicious networks.”

It is an important principle that innocent third parties should be able to access all information about former participants following the dissolution of a limited partnership. I would be grateful for the Minister’s comments.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

It is a pleasure finally to speak in the Committee. It would be an exaggeration to call me the second chair of the SNP; I am more the office junior to my hon. Friend the Member for Glasgow Central, given her knowledge on these matters. I do not intend to repeat much of what was said by the hon. Member for Feltham and Heston, whose amendments I support.

I will make a wider point about power versus duty. In pretty much every Bill Committee I have sat on—perhaps it is something to do with the Bills—amendments have been tabled that seek to replace powers with duties. We all know that there are so many Government agencies and bodies that have lots of powers that are rarely, if ever, used. I have yet to hear a robust response from a Minister as to why we should not replace a power with a duty. Perhaps we will hear one—it may be the first time ever—when the Minister gets to his feet, but I highly doubt it.

In general, the Bill is good, and it enables Companies House and the Secretary of State to do a lot of vital and long overdue work. Sadly, it does not compel them to do enough. That is my issue, and that is why I support the amendments.