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Company Law Reform Bill [HL]

Subsection (5) of Clause 825 allows the Secretary of State to set down in a statutory instrument the detailed framework within which the independent supervisor must work. For example, it may set out what consultations the independent supervisor must carry out, or what information it must include in its annual report. To pre-empt a later amendment, it might cover what issues of financial reporting should be included. Obviously, to remove the Secretary of State’s power to specify these requirements goes against the principle that the framework and powers of such a body should be conferred expressly in legislation. I know that was not the intention as this was a probing amendment. But it covers those sorts of issue. One does not have a crystal ball and cannot foresee everything that might need to be included. I hope the noble Baroness will accept that it is appropriate for this provision to be in the Bill so that these sorts of things can be covered.