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CORE (Corporate Responsibility Coalition) http://www.corporate-responsibility.org/
Trade Justice Movement http://www.tjm.org.uk/
The Bill quietly had its first reading in the House of Commons on 24 May. The second reading of the Company Law Reform Bill (CLRB) took place in the House of Commons on 6 June.
Letters have been sent by CORE, TJM and individual supporting organizations to the government. References were made by Alistair Darling, Secretary of State for the Department of Trade and Industry, to the letter signed by over 30 charities, human rights, environmental and development groups, women’s groups, trade unions, faith groups and companies. The letter was sent to Tony Blair calling on the government to amend the Bill to ensure that business operates for the benefit of people and the environment.
Summary of Company Law Reform Bill Second Reading Debate
Directors’ Duties: the Government is defending the status quo against both CORE/TJM’s call to strengthen Clause 158 and other demands to water it down; the Tories have stated their intention to bring forward new amendments that will retain the provisions of the 1985 Act and may also try to weaken or remove the provisions for shareholder action against directors; the Liberal Democrats are backing the Government on keeping the status quo; but we have some support on the Labour backbenches and from the Nationalist parties for stricter provisions.
Reporting: the Government is currently defending the current “balance” between enhancing transparency and minimising regulation; the Tories seem to be supporting the status quo but there are some Conservative MPs who favour bringing back the Operating and Financial Review (OFR). Please see earlier CORE e-newsletters in January and April 2006 to follow what happened to the OFR. The Liberal Democrats are enthusiastically supporting stricter requirements including CORE/TJM amendments, as are the Nationalists and a number of Labour backbench supporters.
Access to justice: this issue was not widely discussed but the Government is resistant to the concept; there was some interest/support from Labour backbenchers and the Nationalist parties.
The Government is hoping to complete the Bill’s passage in October 2006.
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