HC Deb 02 June 1882 vol 269 cc1940-1
MR. P. MARTIN

asked Mr. Attorney General, Whether his attention has been called to a decision made by Mr. Justice Fry on the settlement of the list of contributories in the winding up of the Electric and Magnetic Company, Limited, and reported in the "Morning Post" of the 22nd May, whereby it appeared that a gentleman who had permitted his name to be advertised as chairman of a company, and applied for shares to qualify him as a director, and who had attended and presided at several meetings of the board, was struck off the list of contributories by reason of his having withdrawn his application for shares a short time previously to the company going into liquidation; whether for the protection of the public he will consider the desirability of so amending the law as to secure that gentlemen who permit their names to be published as directors and attend board meetings shall not be allowed on any technical grounds to escape liability from the just demands of the creditors of the company over which they have so acted as directors; and, whether there is any probability of early legislation on this matter?

THE ATTORNEY GENERAL (Sir HENRY JAMES)

Sir, my attention was not called to this Question until I saw it on the Paper; but I have made inquiries, mainly of the learned counsel engaged in the case, and he informs me that the decision of Mr. Justice Fry only followed a precedent laid down by the Court of Appeal, and that there was really no contract at all which could be enforced.