Source · Select Committees · Public Accounts Committee
Forty-Fifth Report - Department for Business, Energy & Industrial Strategy Annual Report and Accounts 2021–22
Public Accounts Committee
HC 1254
Published 26 April 2023
Recommendations
6
Rejected
Publish convictions for false declarations to Companies House and actions to identify and prosecute offenders.
Recommendation
Confidence in the Companies Register is undermined by errors and inaccuracies. Companies House, an executive agency of the Department, maintains the Register of Companies for England and Wales. The size of the register is growing, which the Department considers reflects …
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Government Response Summary
The government disagrees with the recommendation, stating that most errors are accidental and corrected before prosecution, and courts are reluctant to sanction compliant parties. It highlights the forthcoming Economic Crime and Corporate Transparency Bill which will reform Companies House's powers, but does not commit to setting out conviction numbers or current prosecution actions.
HM Treasury
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Conclusions (1)
21
Conclusion
Rejected
It has been an offence since 2009 to make a false return to Companies House, yet to date there is a record of just one conviction for this offence, in 2018. The Department was unable to confirm the number of prosecutions or convictions made under these existing powers.44 The Department …
Government Response Summary
The government disagrees with the Committee's implied criticism regarding the lack of convictions under existing powers, explaining that most errors are accidental and courts are reluctant to sanction subsequently-compliant offenders. However, it details new powers and reforms under the Economic Crime and Corporate Transparency Bill to strengthen enforcement and combat economic crime.