Key Facts

• Amendment 101 would require the Secretary of State to report any use of identity verification exemptions on national security grounds to the Intelligence and Security Committee.
• The reports must include the names of exempt individuals and companies, as well as the reasons for granting the exemption.
• Clause 65 enables the Secretary of State to exempt a person from ID verification requirements if necessary in the interests of national security or to prevent serious crime.
• Hannah Bardell is proposing amendment 103.
• The amendment would add a requirement for the registrar to publish unique director identifiers online.
• The statement references amendments 102 and 103 tabled by Seema Malhotra.
• Amendment 102 aims to ensure all directors receive a unique identifier for all their directorships, regardless of company formation methods.
• Amendment 103 proposes making these identifiers publicly available on the registrar’s website.
• The current system requires individuals like Alison Thewliss to appear three separate times in the register.
• Some directors have hundreds or even thousands of directorships under their name.
• Changing names can complicate tracking an individual's directorship history.
• The Charity Commission register is cited as a relevant example for understanding someone’s appropriateness and behavior.
• Clause 67 amends section 1087 of the Companies Act 2006.
• Government amendment 10 clarifies that section 1087 is concerned with withholding company-related material.
• Other entities such as limited liability partnerships and limited partnerships have separate provisions for withholding information.
• Clause 68 amends section 1025 of the Companies Act 2006.
• New clause 45 seeks to ensure identity verification before a company is struck off.
• New clause 46 would allow former creditors and liquidators to apply for administrative restoration.
• The statement discusses amendments to section 1025 of the Companies Act under Clause 68.
• New clauses 45 and 46 are mentioned as relevant to discussions on corporate transparency and strike-off processes.
• On average, 400,000 companies are struck off the register each year.
• Director identity verification may deter fraudulent registrations but does not address accountability after dissolution.
• Currently, only 2% of dissolved companies undergo a restoration process annually.
• Clause 69 introduces identity verification requirements for individuals delivering documents to the registrar.
• Clause 70 prohibits disqualified persons from delivering documents either on their own or someone else’s behalf.
• Clause 71 enables the registrar to reject documents delivered by people not within permitted filing categories.
• Individuals delivering documents on behalf of another person must verify their identity.
• The Treasury is conducting a review to strengthen money laundering supervision systems.
• All options, including licensing, should be considered to ensure the system works effectively.
• Clauses 72-75 focus on digital submissions to Companies House.
• Clause 76 introduces a power to reject documents containing information inconsistent with other held data if it raises doubts about the document's compliance.
• Currently, the registrar must accept properly delivered documents despite inconsistencies.
• Hannah Bardell calls for Members to show respect during proceedings.
• The request aims to ensure a quiet environment for Hansard reporters and those watching.
• Clause 76 amends the Companies Act 2006 to give the registrar power to reject inconsistent documents.
• Such documents include annual confirmation statements, annual accounts, forms appointing or terminating directorships, and applications to register a charge.
• The MP questions whether there are deadlines for rejection by Companies House.
• Amendment 12 addresses clause 80.
• New clause 16 ensures protection for verification process information.
• New clause 17 replaces sections and adds new categories to prevent abuse.
• Amendments 39, 40, and 49 are consequential on new clause 17.
• Over 3,000 registrations have been made since August 1, 2022.
• New clause 16 confers a power to make regulations about identity verification.
• Protected information includes protected date of birth, residential address, and trust information.
• There is discussion about providing a list of what information will be on the overseas entities register.