---

Company Law Reform Bill [HL]

The noble Baroness, Lady Noakes, has tabled some important amendments relating to safe harbours for statements in the business review, and I note that the noble Lord, Lord Sharman, has taken the same position. I am sure that they would both accept that they have raised issues which have major implications. We will need to consider what the full implications of providing for such a safe harbour might be. Would it, for example, apply to all forward-looking statements by the directors? What would be the implications of a safe harbour for the liability of directors, not only for narrative reporting, but also for the accounts? Would there be any wider implications? These are some of the considerations that could arise, and, in the context of the consultation currently under way, we will be looking carefully at what the noble Baroness said and what others say on this issue. The noble Baroness asked whether the Government intend that investors disappointed by performance should have the right to compensation. The answer is very clearly, no. Under common law, there is no right for investors to sue for compensation. Reporting is for the company as a whole under the Caparo principle. We shall certainly pay regard to and give careful thought to the amendments and the remarks of the noble Baroness, and those of the noble Lord, Lord Sharman, in Committee today. I hope on that basis the noble Baroness will agree not to press her amendments.