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Company Law Reform Bill [HL]

moved Amendment No. 158:"Page 69, line 9, at end insert ““subject always to the obligations in subsection (3) been fulfilled””" The noble Lord said: I am among those who welcome this list of duties. The amendments in this group are, in some respects, going to lead to a rerun of the fairly specific interchange with the noble Lord, Lord Sainsbury, at Second Reading. In particular, I noted his statement that directors must consider the factors set out in the list in Clause 156(3),"““to the greatest extent that it is reasonably practicable””." This amendment would satisfy those of us who fear that the reference to practicability could drive a coach and horses through the meaning of Clause 156 as a whole. It will be important for this matter to be clarified and to be spoken to by the noble and learned Lord the Attorney-General this afternoon. As the noble Lord, Lord Sainsbury, noted:"““The duty of directors is not to consider the factors in a superficial manner as part of a box-ticking exercise, but to think through the long-term implications of their decisions and address potential risks””.—[Official Report, 11/01/06; col. 244.]" This is a framework within which the law will operate. It is the heart of the clause. I make no apologies for reiterating that the whole of Clause 156 has to be read together in order to understand the new phrase, ““enhanced shareholder value””. I look forward to the Minister’s response. I beg to move.