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Company Law Reform Bill [HL]

On Amendment No. 170, the inclusion of the words,"““take all reasonable steps to””," would invite litigation. The interpretation of what the director had or had not done would be called into question. The recipe that has been recommended is not wise. On Amendment No. 169, I do not believe that the noble Lord, Lord Freeman, has made a substantial case. The words of the Bill catch the precise evil that we want to avoid. Having regard to what has been urged would result in the worst of all words. We must avoid litigation on this subject as well. Therefore, I commend what the Government have said.