Government eases supply chain fears
Companies bill amendment will not allow freedom of information requests to disclose supply chain information
Companies will not have to disclose supply chain information that could lead
to attacks from animal rights extremists.
The late change to the companies bill came as the government clarified the
supply chain clauses in the bill. The bill was passed by the Lords this week and
will become the Companies Act when it receives royal assent.
Trade and Industry Minister Lord Sainsbury announced the additional
alteration to the bill as he spelled out how the government intends the
reporting requirements to work.
Directors will be exempt from disclosing information about a person if
disclosure would, in their opinion, be seriously prejudicial to the interests of
that person, he said.
Other significant changes include new rules that will make it easier for
shareholders to sue directors and oblige companies to make some forward looking
statements in business reviews, the law firm Allen & Overy said.
Companies will also be able to communicate with shareholders via email and
websites.