---

Companies Bill [HL]

My Lords, I must apologise for not having been in the House when the debate began. I was so busy struggling with the Bill and its surrounding papers that I lost track of the time. Because of that, I will not speak at such length as I originally planned. I speak in support of Amendments Nos. 245A, B and D and welcome the Government’s introduction of the amendment. The amendments must be read in the context of Clause 158, which deals with the duty to promote the success of the company. I underline Clause 158(1) (c), which states that one factor is the need to foster the company's business relationships with customers, suppliers and others and, perhaps even more important, Clause 158(1)(e), where it is the duty of the directors to consider the desirability of the company maintaining a reputation of high standards of business and conduct. In the context of those requirements on directors, it is clear that the amendments partially give effect to those paragraphs. I have some difficulty understanding the opposition to the government amendment. What is proposed is very modest indeed. I do not understand what the big business lobby is afraid of. Are their supply problems so bad that the company's directors do not want even their own shareholders to find out about them? If so, surely it is only right and proper to ensure that there is sufficient transparency for investors, who demand improvements from the companies in which they are members. It is well known that fine intentions are not sufficient. For that reason, it is important to pay careful attention and to support AmendmentNo. 245D, which ensures that the requirements of the Bill will have a much better chance of being implemented if companies are audited. As I said, these are extremely modest steps forward and I support the government amendments.