Key Facts

• The registrar currently lacks sufficient powers to compel filers for accurate information.
• Clause 80 will insert proposed new section 1092A into the Companies Act 2006.
• It applies to both existing and future register information.
• Failure to respond to a request can result in up to two years’ imprisonment.
• Clause 81 enables the registrar to resolve inconsistencies between delivered documents and other records held by Companies House.
• Government amendment 13 and new clause 7 expand discrepancy reporting requirements to include director information and registered office addresses.
• New clause 7 introduces a regulation-making power for requiring businesses to check for discrepancies.
• Clause 82 gives the registrar power to remove material from the register if it does not meet proper delivery requirements or is unnecessary.
• Kevin Hollinrake addresses questions about new clause 7 implementation.
• Third-party business entities are expected to understand how the clause should work in practice.
• There will be a reasonableness defence for errors made in good faith.
• Failure to comply with a notice within the 14-day period can lead to an unlimited fine or up to two years in prison.
• Companies need 75% shareholder agreement for name change.
• Registrar can suppress offending company names from public register under new clause 34.
• Government amendment 106 restricts public inspection of suppressed names.
• Clauses 84 to 86 amend provisions in the Companies Act 2006 about inspecting company registers.
• Clause 84 prevents disclosure of certain company names that have been subject to a registrar name-change direction due to criminal concerns.
• Clause 85 clarifies that the right to require copies of material on the register applies only to materials available for public inspection.
• Clause 87 amends the Companies Act to allow individuals to apply for suppression of personal information from public inspection.
• The amendment aims to expand protections for personal data while ensuring transparency and fighting economic crime.
• Individuals must prove serious risk of harm to qualify for protection.
• Clause 87 addresses the disclosure of personal information on the public companies register.
• Law enforcement agencies can access all protected information.
• Individuals applying for suppression or protection need to demonstrate a serious risk.
• The amendment proposes Companies House must carry out a risk assessment to identify matters of concern.
• There are approximately 700,000 company registrations annually in England.
• About 400,000 companies are dissolved each year.
• The Bill currently states the registrar must carry out analysis of information within their possession as they consider appropriate.
• Margaret Hodge's amendment would require a specific "risk-based" approach to identify economic crime risks proactively.
• Companies House has registered only 3,000 properties for a register since August when there are 138,000 to process.
• The current system allows nominees to be put forward as owners despite real control being elsewhere.
• Five beneficial owners control over 6,000 companies, with 4,000 under two years old and almost 10% not declaring a PSC.
• Transparency International found 23 active company service providers offering nominee PSC services in a quick Google search.
• Amendments aim to ensure the registrar analyses information with a view to preventing or detecting crime.
• Amendment 120 would require the registrar to use powers under section 1092A for additional information.
• New clause 37 would insert a duty on the registrar to check an individual's person of significant control status.
• Around 400,000 companies are dissolved and struck off the Companies House register each year.
• R3, an insolvency trade body, stated that the Bill misses opportunities to prevent fraud.
• New clause 41 would require disclosure of total shareholdings by those controlling more than 5% in public companies.
• Kevin Hollinrake intervenes to address Liam Byrne's speech.
• Current law treats shares held by a person as a nominee or proxy for another as if the share is held by the true owner.
• Failure to declare the true owner of assets held through proxies is already a criminal offence under existing legislation.
• The Bill aims to address corporate criminal liability and whistleblower reform.
• Amendment 116 requires the registrar to assess every single company record for risk.
• New clauses 37 and 38 would mandate daily risk assessments of around 1,000 companies per day.
• The registrar resolves 1,000 companies daily.
• New clauses 41, 42, and 43 aim to address concerns about nominee shareholders in public companies.
• Amending the law would impose additional disclosure obligations on individuals holding shares as nominees for others.
• The registrar will be obliged to undertake analysis as appropriate for crime prevention and detection purposes.
• The new clause supports the establishment of an intelligence hub founded on statutory basis derived from the Bill's data sharing powers.
• The hub aims to identify strategic and tactical economic crime threats based on information in the register.