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Companies Bill [Lords]

People who are prosecuted are not always found guilty and the provision may well lead to spurious cases that put reputations on the line. The judgment as to whether the auditor’s judgment about whether he or she knew that a risk was unreasonable will be made by the courts, rather than by the auditor as at present. Can Ministers name one case that they believe should have been brought to court, but which was not because this offence did not exist? We would all be interested to hear which cases they feel have not been dealt with as a result of not having this law in place. I did not receive an answer to that question on Second Reading or in Committee. Perhaps I will finally get an answer today. The danger is that very few—if any—prosecutions will be brought. At the breakfast briefing last week, the Minister for Industry and the Regions seemed at pains to stress that the offence would be rarely used, and yet the ramifications for business and the audit profession could be broad.