Growth and Infrastructure Bill
Debate between George Freeman and Nick de Bois
Nick de Bois
I will come to that. I know that the hon. Gentleman has a history in corporate mergers and acquisitions. When I started my business some time ago, engaging with individuals and offering them a stake in my business was fundamental. It was all about the people I worked with, so I gave away shares to individuals to whom I wanted to give them in order to make them part of the company. I did not have the advantage of what is being offered today, but neither did I have the disadvantage of the market we are in today. Back then, we had not seen the massive increase in employment regulation that came in from Europe under the previous Government.
George Freeman (Mid Norfolk) (Con)
My hon. Friend, like me, has experience of running small businesses. On the connection between rights and responsibilities in a small company, does he agree that it is fundamentally in start-ups and micro and small businesses, where regulations and red tape hold back progress, that we need to help employees to understand the link between the two? Furthermore, does he agree that that is why the measure has been welcomed by entrepreneurs and senior business people, such as Brent Hoberman, the co-founder of Lastminute.com, and Stuart Rose from M&S? Brent Hoberman said that this imaginative new proposal would be welcomed by British entrepreneurs and entrepreneurial employees alike and that it will encourage workers to be company owners and give fast-growing businesses more flexibility in return.
Nick de Bois
I agree. The point I am trying to make, in as balanced and fair a way as I can under the circumstances, is that, like many people, when I started a business I did not worry about employment rights and legislation. I tackled it with enthusiasm; I went for it. When I did that, however, in the late ’80s, I did not have to think about the issues that are now facing many people and which are now at the forefront of their minds. That is why I welcome the proposal.
I want to stick to my main premise, in response to the comments from the hon. Member for Streatham. I do not believe that anyone will lightly give up shares in a business. It is not something that employers do. They give shares up only in return for value, and they get that value from people or by selling them. It is perfectly reasonable to assume that employers will look for value from what they give up. As he will know with his background, however, we also have to bear it in mind that by transferring shares, employers also transfer rights—in contrast to what he said about employment rights—under the Companies Act 2006, which was introduced by the last Government, which enhanced the rights of minority shareholders, such as on matters of prejudice. Employees can even form quasi-partnerships through small minority shareholding. Employers do not lightly give up shares, and when they do, they actually give rights to individuals.