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Company Law Reform Bill [HL]

Other clauses in the Bill do much to make it easier for companies, if they wish, to submit information electronically to the registrar. Indeed, facilitating the use of such communications generally is one of the themes underlying many areas of the Bill, which has been very much welcomed by business and others. I agree that there is a great difference between facilitating such communications and requiring them. That is why, whereas in many respects the Bill provides that the registrar will be able to make rules about the form and manner of documents which are sent to her, in this instance only the Secretary of State can do so. Any such regulations will be subject to the affirmative resolution, thus ensuring that Parliament has actively agreed to the change. Even so, I understand the concern at any prospect that a large number of companies which are not ready for, and do not want, electronic communication, may be forced into it. I am happy to give assurances that this is not our intention. The Government have no plans to make use of this power in the short term. The power is there purely to provide flexibility for the longer term when, at some future date, it may have become so much the norm for companies to use electronic communications that there is effectively no real burden imposed by requiring them to use such forms of communication in some circumstances. That day has not yet arrived and, until it does, I do not see the power being used. But it is right that the Bill should include a mechanism to make provision as and when it does arrive.