12 May 2006
Comments on proposed law against extremists
Capita Registrars has criticised the changes to Section 356 of the 1985 Companies Act proposed by the Government to protect the identity of British Shareholders.
John Roundhill, chairman of ICSA Registrars Group said that the proposed reforms, which were debated in the House of Lords on Tuesday 9th May, would prove ineffective.
The proposed changes are intended to make it harder for a third party to obtain a copy of the register of a company’s shareholders. The new proposals mean companies are obliged to deliver the register only if the person requesting it can prove that they require the information for a “fit and proper” purpose.
Main concerns include the logistics behind obtaining and proving the “fit and proper” use and the five day time period in which the details must be sent. Failure to complete the request or to release details without a “fit and proper” intention determined will result in severe penalties for the company.
Capita Registrars are discussing an amendment to clause 116 following the debate in the House of Lords led by Lord Sainsbury on 9th May 2006. The Department of Trade and Industry have indicated, since the events surrounding the targeting of GlaxoSmithKline shareholders, that they will consider a new offence concerning the misuse of the register.
For further information on this subject an article by Tom Bawden from The Times, May 9th 2006 is viewable here.