§ MR. HYDE (Wednesbury)To ask the President of the Board of Trade whether he is now in a position to give any information with reference to the existence of compulsory reserve funds for limited liability companies in foreign countries.
(Answered by Mr. Lloyd-George.) I have now obtained information from France, Germany, Italy, and Belgium on the question of compulsory reserve fund. In France, Germany, and Belgium joint stock companies are compelled to set aside 5 per cent. of their net profits for the formation of a reserve fund until 674 the reserve fund is equal to 10 per cent. of the company's capital. In Italy the law is that a similar proportion of I the net profits should be placed to reserve until the reserve fund is equal to 20 per cent. of the company's capital. In none of the above countries are there any special rules governing the investment of moneys forming the reserve funds of joint stock companies.