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Company Law Reform Bill [HL]

I am grateful to the Minister. I hope that he will forgive me for saying that his speaking note is not compelling. If I can acquire a person’s shares compulsorily and forever by obtaining 90 per cent and the blocking 10 or 9.9 per cent can have their shares removed from them come what may, that is much more potentially damaging to the minority than would be the case with entrenchment. We encourage the Government to consider a slightly lower percentage because we want some flexibility. If 90 per cent of the members of a company agree that entrenchment would be a good idea, then surely the 10 per cent should not be able to block it. In the example I gave, it might be possible not to entrench because a member has died and probate has not been granted on the estate; assent could not be given. The proposed corporate arrangement would be held up. I shall take the amendment away and think about what the Minister said, but we may wish to return to it in the interests of flexibility and corporate development. I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. Clause 23 agreed to. Clause 24 [Notice to registrar in case of entrenched provisions]: