Appendix 6
S.I. 2007/3495: memorandum from the Department
for Business, Enterprise and Regulatory Reform
Companies Act 2006 (Commencement No. 5, Transitional
Provisions and Savings) Order 2007 (S.I. 2007/3495)
The Committee has asked the Department for Business,
Enterprise and Regulatory Reform for a memorandum on the following
point:
Is it correct that the provision intended to be
referred to in paragraph 2(2) of Schedule 5 is section 734(1)
of the Companies Act 1985 (not 2006)? If so, given articles 1(3)
and 8 of S.I. 2007/2194, what is the purpose of paragraph 2(2)
of Schedule 5 to this Order?
1. It is correct that the provision intended
to be referred to in paragraph 2(2) of Schedule 5 to SI 2007/3495
is section 734(1) of the Companies Act 1985 (not 2006). The Department
had already noticed this mistake and will shortly be making a
correcting Order which will be issued free of charge to all known
recipients of SI 2007/3495.
2. Articles 1(3)(a) and 8 of SI 2007/2194 brought
into effect on 1 October 2007 the repeal of, amongst other provisions,
section 734(1) of the 1985 Act. The repeal of section 734(1) was
an error. Its replacement in the 2006 Act, section 1130, was brought
only partially into force on 1 October 2007 by article 2(1)(l)
of SI 2007/2194. It was intended that section 734(1) would continue
in force in respect of those matters not within the partial commencement
of section 1130 of the 2006 Act: and section 734(1) was simultaneously
amended by paragraph 16(2) of Schedule 4 to SI 2007/2194 for this
very reason. In other words, SI 2007/2194 contained a contradiction,
namely amendment and repeal of the same provision.
3. The purpose of paragraph 2(2) of Schedule
5 to SI 2007/3495 was to resolve the contradiction by amending
Schedule 2 to SI 2007/2194 so as to omit the repeal of section
734(1), leaving only its amendment in Schedule 4 to SI 2007/2194.
This would have been achieved had the error not been compounded
by the incorrect reference to the 2006 instead of the 1985 Act.
4. The Department regrets the confusion that
this will have caused.
Department for Business, Enterprise and Regulatory
Reform
28th January 2008
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