Companies House Makes U-Turn on Deletion of Records

We reported in edition 152 of BC Disease News, that Companies House had announced plans to reduce the amount of time the records of dissolved companies are retained, from 20 years to 6.

This announcement was followed by a flurry of criticism, with claims that the move would undermine the government’s plan to tackle corporate irresponsibility and would hinder businesses, journalists and the police in their efforts to investigate corporate corruption.

It has now been announced that these plans have been abandoned by the government’s company registration agency. Margot James, undersecretary of state for the Department for Business, Energy and Industrial Strategy has been quoted as saying:[i]

‘The government has no current plans to bring forward proposals to reduce the period of time that Companies House retains records of dissolved companies. Nevertheless, we will continue to keep the retention period under review, during which time the registrar of companies will ensure there is no destruction of records. Additionally, any future proposal to change the retention period would be subject to public consultation’.

This statement came in response to a written parliamentary question from SNP MP, Martin Docherty-Hughes after discussions with the Asbestos Victims Support Groups Forum UK, which had initially planned legal action against the government if the proposal went ahead. It claimed that the proposals would have proved disastrous for people with asbestos related mesothelioma seeking to secure compensation for their negligent workplace exposure to asbestos. This is because of the long latency period of the disease, meaning that the employer has usually gone out of business by the time the disease develops. Access to Companies House records on dissolved companies may be crucial in asbestos and long tail disease claims, enabling them the correct former employer and its insurer liable to pay compensation.

Welcoming this change of heart, Graham Dring, Chair of the Asbestos Victims Support Groups' Forum UK said:
‘This decision is good news for victims of mesothelioma and other long-tail industrial diseases who already face an uphill struggle securing justice in the courts. If these proposals had gone ahead it would have denied access to justice to many asbestos victims unable to pursue a negligent employer or their insurer. It is also reassuring to hear the Minister confirm that no records will now be destroyed as even the 20 year retention period is inadequate in protecting the interests of terminally ill asbestos victims who may have been exposed to asbestos 40 or 50 years before. There is no way of predicting which records may be needed in the future. Storage should not be an issue with the technology available to us today and we expect Companies House to maintain its commitment to those suffering from mesothelioma now and the thousands more predicted in the future by retaining records of all dissolved companies.’