I move amendment No. 29a:
In page 89, subsection 1 (a), line 6 to delete " 50 " and substitute " 35 ".
This is in relation to the defining of close companies. I will just deal very briefly with the background to my amendment. The Bill now provides that in calculating the percentage of voting power held by the public the following are excluded: any director of a company, any company under the control of one or more of the directors, any associated company, any funds, such as pension funds, for the benefit of employees or the directors of the company itself or any associated company. And, of course, a quoted company where 50 per cent of the voting power is held by the public. Where five or fewer persons own more than 50 per cent of the voting power in the company none of these persons will be allowed as members of the public.
I am suggesting that 50 per cent is too high and that this would, in fact, bring many Irish public companies within the close company legislation. The general approach of the Bill is that at least 50 per cent of the voting power has to be held by the public and if we apply the very stringent tests which the legislation sets out, then a very, very large number of Irish public companies could be brought within these close company provisions. I am suggesting that the percentage should be 35 per cent and my reason for fixing 35 per cent is because that is the level which is accepted by the Federation of Stock Exchanges for quotation purposes. Fifty per cent is much too high.