Companies (Disclosure of Address) (Amendment) Regulations 2018

Lord Campbell-Savours Excerpts

Monday 16th April 2018 Lords Chamber

[Lord Fox (LD)]

My Lords, before commenting and asking some questions, I declare an interest in that I have been having personal communication with Companies House on an issue not unadjacent to this.

The Minister set out what we see as a pragmatic balance between what is practical and what is desirable—trying to balance what is needed to retain security and privacy while at the same time doing something that is both technically and administratively possible. For those reasons, we welcome the regulations. I have a couple of questions about the criteria and process for assessing applications within Companies House. Can the Minister give your Lordships’ House some idea of how the applications will be received and processed, and what criteria will be used to decide to remove a person’s private address and insert a holding address?

The Minister set out that a holding address would not be required for dissolved companies or directors who have stepped down. Would he consider a cooling-off period? After a company is dissolved, there is a period when its activity remains salient and therefore the activities of those past directors remain salient. Then there is a point at which, clearly, it is a dormant company and there is no fallout from its activities. A cooling-off period would be from the time at which the company is wound up until the time at which directors’ communications are removed.

It behoves me on these Benches to make the point that we still have a strong policy and we call for public registers of beneficial ownership to be extended to include British Overseas Territories. I understand that this SI does not necessarily cover that area, but I feel beholden to make that point. With those questions, we welcome the regulations.

[Lord Campbell-Savours (Lab)]

My Lords, I have just a couple of questions. In the regulations under the title, “Effect of a section 1088 application”, paragraph 13(4) states:

“In any other case the registrar must make the specified address unavailable for public inspection by removing all elements of that address, except—(a) for a United Kingdom address— (i) the outward code from the postcode”.


The Minister referred to “leaving the first part of the postcode”. What is the relevance of keeping that first part? Why any part of the postcode?

My second question relates to the Explanatory Memorandum, which states:

“Amendments have also been made to the 2009 Regulations by regulation 3 to ensure that one of the grounds on which an individual is able to make an application under section 243 of the Companies Act 2006 (to prevent disclosure of their address by the registrar to credit reference agencies) is that they are or have been a constable”—


that is, a policeman. Why is a special category of persons defined here in the legislation? Why do constables have this exemption?

[Lord Stevenson of Balmacara (Lab)]

My Lords, I thank the Minister for introducing this statutory instrument. He expressed a view on the last one that we were at the dawn of a new era of understanding and mutual support across the Chamber. I am afraid it has lasted only 10 minutes because this is not a particularly easy SI to support. I have one or two comments that will not fit into that category, for which I apologise in advance. Also, like the noble Lord, Lord Fox, I declare an interest as a former director of a former live company, so I will be caught by at least part of the regulations.

I wonder whether this instrument should be looked at carefully in terms of its standards. I have a number of comments to make, but it seems to be based on virtually no evidence at all. There has been no consultation and there is no impact statement, so we are looking at something that has been brought forward with little prior preparation and little detail around it. That reflects badly on the department in that this is an important area, and one that may receive more attention in the future, particularly because of the growth of the internet and so on, so we have to get it right. The regulations also seem—I would be grateful if the Minister could confirm this—to have been devised outside the ambit of the Data Protection Bill. The Bill is still in the other place but it will shortly become law. It covers a large number of areas that would otherwise have been picked up in this statutory instrument; indeed, in one respect it may be otiose.

--- Later in debate ---

[Lord Henley]

My Lords, I am sorry that we could not continue with the same attitude as we had to the previous order, other than in relation to the noble Lord, Lord Stevenson. I am grateful that the noble Lord, Lord Fox, described this as a pragmatic balance. That is exactly what we have tried to achieve in providing protection for the individual but still making sure that certain public things continue to be public.

The noble Lord, Lord Stevenson, objected to the lack of consultation for something as important as this, saying that there was a lack of consultation and a lack of an impact statement. I will write to him in further detail on the lack of consultation but I assure him that we have received a number of inquiries— around 3,000, I am told. As the Minister who deals with letters from Members of another place on their constituents’ concerns, I have had to sign a number of letters relating to their concerns over not being able to get something removed. It is depressing that I often have to say, “I’m terribly sorry, there is nothing we can do at this stage”, so I was grateful that we could do something quickly and without the necessary consultation. Since individual companies are not required to do anything—or stop doing anything—an impact statement is not necessary. All the regulations do is give people the option of applying to have residential address information suppressed, if they so choose. There is no impact on Companies House, as the application fee will cover the costs of processing the application. In those circumstances, an impact assessment—whether coloured in for the noble Lord or in black and white—is not necessary.

The noble Lord, Lord Stevenson, picked up on the problem with microfiches. I understand that deleting something from a microfiche can affect it. Now that one can move things on to CDs, the process is somewhat easier, but the important thing is that the microfiches will be kept. From a historical point of view, we will still keep records from the past. I will write to him in greater detail about public authorities and how they get appropriate authority, but that will not change as a result of this order. The issue—the mere fact that it comes in immediately—does not affect companies and there will be no burden, so the lack of a commencement date is not a problem. As always, I note what the noble Lord, Lord Stevenson, said about the desirability of sticking to common commencement dates and will try to stick to that in future.

The noble Lord, Lord Campbell-Savours, asked rather a technical question about the category relating to constables in a police force. Under Regulation 5 of the 2009 regulations, on disclosing a residential address to a credit reference agency, one of the grounds for applying to the registrar is that a person is or has been employed by a police force. We are concerned that this may not cover constables because they are technically officeholders rather than employees. The draft regulations merely make it clear that police constables may apply to prevent disclosure under Regulation 5.

[Lord Campbell-Savours]

Why would they want that exemption?

[Lord Henley]

That would be a matter for the police constables themselves. It would probably be best, rather than ad-libbing an answer, if I wrote in greater detail to the noble Lord on that point.

Finally, the noble Lord, Lord Fox, asked about the criteria to be used by Companies House in considering this. The regulations merely allow a person to apply to have their residential address and information suppressed without having to give any reason. The criteria are not relevant in this case; they do not have to give a reason for their application, whereas in the past they did. That therefore simplifies matters and, I hope, continues to meet that pragmatic balance that the noble Lord so warmly welcomed. I hope that deals with all the points that were made.

--- Later in debate ---

[Lord Campbell-Savours]

I drew attention to half a postcode being published.

[Lord Henley]

I will possibly add this to my response to the noble Lord, but I suspect that giving half a postcode provides, as it were, some information without giving details. In other words, if someone added CA6 to my name one would know that I lived somewhere not so far from the noble Lord in Cumberland, but it would not say precisely where I live because it would not give the address. As the noble Lord, Lord Stevenson, said, there are other ways of finding out people’s addresses. We are just trying to provide appropriate protection.