§ Mr. GINNELLasked the President of the Board of Trade whether the National United Assurance Society, Limited, and the United National Friendly Assurance Collecting Society are registered under the Assurance Act, 1909; if so, what steps, if any, were taken by the Board of Trade when requiring the former company to discontinue issuing policies to safeguard the rights of policy-holders transferred without their consent to the second of those companies; whether the shareholders illegally obtained were similarly transferred; whether he is aware that these small investors are now unable to recover their money from either company; and whether the Board of Trade continues 1580 passive while the same group of persons start several companies, evade the law by transferring their victims from one company to another under the same management, and then refuse to pay?
The PARLIAMENTARY SECRETARY to the BOARD of TRADE (Mr. Robertson)No companies or societies can be registered under the Assurance Companies Act, 1909. The National United Assurance Society, Limited, is registered under the Industrial and Provident Societies Act, 1893, and the United National Friendly Assurance Collecting Society is registered under the Friendly Societies Acts. Shareholders of the National United Assurance Society, Limited, could not be transferred to the United National Friendly Assurance Collecting Society, which is a society registered under the Friendly Societies Acts, and the policy-holders could not be transferred from one society to the other without their consent or an order of the Court. The Board of Trade have no control over contracts made by individual policyholders, nor have they any jurisdiction to compel a company to repay money which it has received.
§ Mr. GINNELLIs the hon. Gentleman aware that the statement in this question is contained in a joint prospectus of these two companies, and whether those prospectuses are submitted to the Board of Trade?
Mr. ROBERTSONI am not aware of that, but it would not alter the accuracy of the statement given in the answer.
§ Mr. GINNELLHas not the Board of Trade always power to direct the attention of the Public Prosecutor to these matters?
§ Mr. GINNELLasked the President of the Board of Trade whether he will ascertain and state the date of amalgamation of the Irish Provident Assurance Company and the London and Provincial Assurance Company; the dates and text of circulars previously issued by them representing that the amalgamation was already an accomplished fact; whether such representation was allowed by the Board of Trade; what security there is for the long-term house purchase bonds of the latter company which those circulars induced subscribers of the former company to take; what the present value of 1581 those bonds is; and whether he will have the transaction of those amalgamated companies investigated forthwith?
Mr. ROBERTSONI have no official information as to the details of any arrangements which were entered into between the Irish Provident Assurance Company, Limited, and the London and Provincial Assurance Company, Limited, nor have I any means of ascertaining the dates on which individual policy holders transferred their contracts from one company to the other. The Board of Trade have no jurisdiction to allow or disallaw representations contained in circulars issued by a company. The returns which are required from the London and Provincial Assurance Company, Limited, in accordance with the provisions of the Assurance Companies Act, 1909, are at present under the consideration of the Board of Trade, and when those returns have been filed, they will be open to inspection and a copy must be sent by the company to any policy holder on his application. I do not think it would be proper for me to express an opinion as to the security for any class of bonds issued by the company or as to the value of those bonds. As the hon. Member has already been informed, the only power of the Board of Trade to investigate the affairs of the company is that contained in Section 109 of the Companies (Consolidation) Act, 1908, which enables the Board of Trade to appoint one or more inspectors to investigate the affairs of the company on the application of members holding not less than one-tenth of the shares issued.
§ Mr. GINNELLHas any Department of the Government power to prevent or to examine misleading circulars issued by companies?