PART 1U.K.Companies etc

General offences and enforcementU.K.

104Financial penaltiesU.K.

(1)The Companies Act 2006 is amended as follows.

(2)In the heading to Part 36 (Offences under the Companies Acts), at the end insert “and financial penalties”.

(3)After section 1132 insert—

“Financial penaltiesU.K.

1132APower to make provision for financial penalties

(1)The Secretary of State may by regulations make provision conferring power on the registrar to impose a financial penalty on a person if satisfied, beyond reasonable doubt, that the person has engaged in conduct amounting to a relevant offence under this Act.

(2)“Relevant offence under this Act” means any offence under this Act other than an offence under a provision contained in—

(a)Part 12 (company secretaries);

(b)Part 13 (resolutions and meetings);

(c)Part 16 (audit).

(3)The regulations may include provision—

(a)about the procedure to be followed in imposing penalties;

(b)about the amount of penalties;

(c)for the imposition of interest or additional penalties for late payment;

(d)conferring rights of appeal against penalties;

(e)about the enforcement of penalties.

(4)Provision made under subsection (3)(b) must ensure that the maximum financial penalty that may be imposed does not exceed £10,000.

(5)The regulations must provide that—

(a)no financial penalty may be imposed under the regulations on a person in respect of conduct amounting to an offence if—

(i)proceedings have been brought against the person for that offence in respect of that conduct and the proceedings are ongoing, or

(ii)the person has been convicted of that offence in respect of that conduct, and

(b)no proceedings may be brought against a person in respect of conduct amounting to an offence if the person has been given a financial penalty under the regulations in respect of that conduct.

(6)Amounts recovered by the registrar under the regulations are to be paid into the Consolidated Fund.

(7)Regulations under this section are subject to affirmative resolution procedure.

(8)In this section “conduct” means an act or omission.”