§ MAJOR EVANS-GORDON (Tower Hamlets, Stepney)
I beg to ask Mr. Chancellor of the Exchequer whether his attention has been called to the loss which is occasioned to the Inland Revenue by the registration of limited liability companies in Johannesburg instead of in London, without the previous issue of prospectuses, and the consequent evasion of the Company Law; whether he is aware that the shares of the companies so registered are dealt in on the London Stock Exchange at inflated values; and, whether he can see his way to put a stop to these practices.
§ THE PRESIDENT OT THE BOARD OF TRADE (Mr. GERALD BALFOUR, Leeds, Central)
I am aware that the -shares in limited companies registered in 169 the Transvaal Colony and in other Colonies and foreign countries, and therefore not subject to the provisions of the English Companies Acts are dealt in on the London Stock Exchange, but whether prospectuses of such companies are or.are not previously issued, or whether the shares are dealt in at inflated values I cannot say. Probably the point which my hon. and gallant friend appears to have in his mind would be met by framing new rules for the registration of companies in the Transvaal, and I am informed that this is being done, but any question on this subject should be addressed to my right hon. friend the Secretary of State for the Colonies.