§ SIR H. DRUMMOND WOLFFasked Mr. Chancellor of the Exchequer, Whe- 20 ther, at the meeting of the Suez Canal Company held at Paris on Wednesday the 12th of March, the arrangement was confirmed by which seven new English Directors are to be added to the Council of Administration; and, if not, whether Her Majesty's Government are in any way bound to consider the rest of the new arrangement as conclusive and binding?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)I have conferred with the official Directors of the Suez Canal Company, and they inform me that the Report of the President of the Company embodying the agreement between M. de Lesseps and the Association of Shipowners Trading with the East was approved at the meeting on the 12th instant. One of the articles of that agreement is in the following words:—
In addition to the three Directors designated by the English Government, seven new Directors, chosen from among English, shipowners and merchants, shall at once he admitted as members of the Board. In order to confer upon these seven Directors the power of voting, which attaches to the present Directors, the Administration will propose to the shareholders to modify the statutes, and to revert to the figure at first fixed for the number of Directors—namely, 32. In the meantime, and until the necessary formalities shall be accomplished, the Administration will invite these seven Directors, as soon as they have been chosen, to be present at the meetings of the Board.For the alteration of the statutes contemplated by this article, a separate vote was required. The proposal to modify the statutes in this respect was adjourned, a quorum not being present; and until that proposal has been put to the shareholders I can say nothing.
§ SIR H. DRUMMOND WOLFFsaid, he wanted to know whether, pending the alteration, these new Directors would have the right of voting at the Board; whether, in fact, they would not be there merely as shareholders; and, further, whether it was not a fact that existing statutes could only be altered by a vote of two-thirds of the shareholders present; and whether, in case two-thirds of the shareholders did not consent, the remainder of the agreement would hold good?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)I cannot answer the last Question, and can only reply as to matters of fact. I have already informed the hon. Gentleman that the 21 seven new Directors would be at once admitted as members of the Board; but in order to confer upon them the power of voting, the Administration proposes to modify the statutes. I believe a vote of two-thirds will be necessary, but that does not appear on the report of the proceeding.
§ SIR H. DRUMMOND WOLFFsaid, it was impossible to get an intelligible answer from the right hon. Gentleman. He wished to know whether the new Directors would be legal Directors of the Company until the statutes were altered, and whether till that was done the Resolution he had laid before the House would be of any avail?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)I have answered that as plainly as possible. Surely the hon. Gentleman could not have heard inc. Shall I read the extract again?
§ SIR H. DRUMMOND WOLFFI heard you.
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)then re-read a portion of his answer, and added—Of course they have not the power to vote.
§ SIR H. DRUMMOND WOLFFThey have not?