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Lord Simon of Glaisdale: My Lords, I apologise for coming belatedly into the consideration of the Bill, having intervened only on one matter at an earlier stage. However, it caught my ear when the Minister referred to a certain amendment which was designed to ensure that the Inland Revenue was not prevented from giving information. That is a matter that we considered in considerable detail and force on the Child Support Bill. I can see the noble Lord smiling. The confidentiality of the Inland Revenue is a matter of great importance. Can the noble Lord expand on what he said?

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Lord Mackay of Ardbrecknish: My Lords, when I looked through the amendments I wondered whether the noble and learned Lord would allow the issue to pass without raising that question, which we debated at some length in a slightly different context on the Child Support Bill.

Perhaps I may explain that Amendment No. 180 removes a potential barrier to the exchange of information between the authority and the Inland Revenue. Section 182 of the Finance Act 1989 sets out the various duties of confidentiality owed by the board and staff of the Inland Revenue. However, the Board of the Inland Revenue and its staff are also subject to a duty of secrecy by virtue of Section 6 of the Taxes Management Act 1970. The amendment ensures that the Inland Revenue is not prevented from providing relevant information to the authority.

Perhaps I can help the noble and learned Lord by assuring him that the provisions for disclosure respect the usual conventions of confidentiality with regard to the Inland Revenue.

On Question, Motion agreed to.


COMMONS AMENDMENTS
22Clause 16, page 8, line 37, after 'secure' insert '(a)'.
23Page 8, line 39, after 'and' insert:
'(b) that those arrangements, and the appropriate rules, are'.
24Page 8, line 43, leave out from 'provide' to end of line 16 on page 9 and insert:
'(a) for any person who has been nominated and selected in accordance with the appropriate rules to become a trustee by virtue of his selection, and
(b) for the removal of such a person to require the agreement of all the other trustees.
( ) Where a vacancy for a member-nominated trustee is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance with the appropriate rules.'.
25Page 9, line 20, leave out from 'years' to end of line 22.
26Page 9, line 32, leave out from 'trustee' to end of line 35 and insert 'but, for the purposes of this subsection—
(a) any provision made by an order under section 8(4), and
(b) section 22(2),
shall be disregarded'.
27Clause 17, page 9, line 42, leave out from 'scheme' to 'and' in line 3 on page 10 and insert:
'(b) the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure'.
28After Clause 17, insert the following clause:—

Corporate trustees: member-nominated directors

'.—(1) Where a company is a trustee of a trust scheme and the employer is connected with the company or prescribed conditions are satisfied, the company must, subject to section (Corporate trustees: exceptions), secure—
(a) that such arrangements for persons selected by the members of the scheme to be directors of the company as are required by this section are made, and
(b) that those arrangements, and the appropriate rules, are implemented.

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(2) Persons who become directors under the arrangements required by subsection (1) are referred to in this Part as "member-nominated directors".
(3) The arrangements must provide—
(a) for any person who has been nominated and selected in accordance with the appropriate rules to become a director by virtue of his selection, and
(b) for the removal of such a person to require the agreement of all the other directors.
(4) Where a vacancy for a member-nominated director is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance with the appropriate rules.
(5) The arrangements must provide for the selection of a person as a member-nominated director to have effect for a period of not less than three nor more than six years.
(6) The arrangements must provide for the number of member-nominated directors to be—
(a) at least two or (if the scheme comprises less than 100 members) at least one, and
(b) at least one-third of the total number of directors;
but the arrangements must not provide for a greater number of member-nominated directors than that required to satisfy that minimum unless the employer has given his approval to the greater number.
(7) The arrangements must provide that, if a member-nominated director who was a member of the scheme when he was appointed ceases to be a member of the scheme, he ceases to be a director by virtue of that fact.
(8) Where this section applies to a company which is—
(a) a trustee of two or more trust schemes, and
(b) a wholly-owned subsidiary (within the meaning of section 736 of the Companies Act 1985) of a company which is the employer in relation to those schemes,
the following provisions apply as if those schemes were a single scheme and the members of each of the schemes were members of that scheme, that is: the preceding provisions of this section, section (Selection, and eligibility, of member-nominated trustees and directors) and section 18(7).'.
29Insert the following clause:—
Corporate trustees: exceptions

' .—(1) Section (Corporate trustees: member-nominated directors) does not apply to a company which is a trustee of a trust scheme if—
(a) a proposal has been made by the employer for the continuation of existing arrangements, or the adoption of new arrangements, for selecting the directors of the company,
(b) the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure, and
(c) such other requirements as may be prescribed are satisfied.
(2) Where—
(a) by virtue of subsection (1), section (Corporate trustees: member-nominated directors) does not apply to a company which is a trustee of a trust scheme, and
(b) the employer's proposal was for the adoption of new arrangements which, in consequence of subsection (1) (b), are adopted,
the company must secure that the proposed arrangements are made and implemented.
(3) For the purposes of this section, the arrangements for selecting the directors of a company include all matters relating to the continuation in office of the existing directors,

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the selection or appointment of new directors and the terms of their appointments and any special rules for decisions to be made by particular directors.
(4) Section (Corporate trustees: member-nominated directors) does not apply to a company which is a trustee of a trust scheme if the scheme falls within a prescribed class.
(5) Section 10 applies to any employer who—
(a) makes such a proposal as is referred to in subsection (1) (a), but
(b) fails to give effect to the statutory consultation procedure.'.
30Insert the following clause:—
Selection, and eligibility, of member-nominated trustees and directors

' .—(1) For the purposes of sections 16 to 18, the appropriate rules are rules which—
(a) make the provision required or authorised by this section, and no other provision, and
(b) are for the time being approved under the statutory consultation procedure or, if no rules are for the time being so approved, are prescribed rules;
and the arrangements required by section 16 or (Corporate trustees: member-nominated directors) to be made must not make any provision which is required or authorised to be made by the rules.
(2) The appropriate rules—
(a) must determine the procedure for the nomination and selection of a person to fill a vacancy as a member-nominated trustee, and
(b) may determine, or provide for the determination of, the conditions required of a person for filling such a vacancy.
(3) The appropriate rules must provide for a member-nominated trustee to be eligible for re-selection at the end of his period of service.
(4) Where a vacancy for a member-nominated trustee is not filled because insufficient nominations are received, the appropriate rules must provide for determining the next period in which persons may be nominated and selected in accordance with the rules, being a period ending at a prescribed time.
(5) The appropriate rules must provide that, where the employer so requires, a person who is not a member of the scheme must have the employer's approval to qualify for selection as a member-nominated trustee.
(6) Where section (Corporate trustees: member-nominated directors) applies to a trust scheme, references in this section to a member-nominated trustee include a member-nominated director.'.


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