To ask the Secretary of State for Trade and Industry (1) what assessment he has made of the effect of delays by his Department in changing the Companies Act on companies that wish to register for TAURUS and that have a December year end; and what estimate has been made of the costs involved for such companies;(2) what are the reasons for the delay in publishing the necessary changes for the implementation of TAURUS;(3) when his Department first established that there would need to be a change in section 207 of the Companies Act to permit companies to register for TAURUS.
[holding answer 23 November 1990]: No changes to section 207 of the Companies Act 1989 are proposed or necessary. The DTI was aware of plans for TAURUS when it drafted section 207: it had to take a general power because TAURUS was not then fully defined. The DTI has been out to consultation on the current TAURUS scheme and is now considering the replies. Regulations using the section 207 power will be put, as planned, to the House for affirmation next year. The regulations will include provisions allowing companies to pass simply drafted resolutions in order to join TAURUS, making it easier, for those who are ready, to do so early in the two-year build-up planned by the international stock exchange. We are working closely with the stock exchange to ensure the regulations are in place in time for the new system. Recent press reports that DTI is causing delay have been inaccurate.