HC Deb 24 July 1912 vol 41 cc1161-2
50. Mr. HAROLD SMITH

asked whether, having regard to the allegations which have been made against the management of the United Malaysian Rubber Company and to the fact that 40 per cent, of the British shareholders desire a Board of Trade Inquiry, the Government will consider the desirability of so amending Section 109 of the Companies (Consolidation) Act, 1908, as to empower the Board of Trade to hold an inquiry on the application of members holding one-tenth of the shares issued for cash?

The PRESIDENT of the BOARD of TRADE (Mr. Buxton)

The proportion of the issued shares of a company required to support an application to the Board of Trade for the appointment of an inspector was, after careful consideration, reduced in the year 1907 from one-fifth to one-tenth, and as at present advised I do not see my way to propose legislation further reducing the proportion or giving special rights to the holders of shares issued for cash.

Mr. HAROLD SMITH

Could the Board not be induced either to reconsider its decision or, at any rate, to receive a deputation on the subject, particularly having regard to the fact that it frequently happens, as in this case, grave allegations are made against the promoters of a company, and such promoters are able to outvote the other shareholders?

Mr. BUXTON

I shall be very glad to receive any representations with regard to the matter; but three or four years ago this matter was considered in the House, and fresh facts sufficiently strong have not come to the knowledge of the Board of Trade to induce it to take action.

Mr. HAROLD SMITH

Would the right hon. Gentleman consent, having regard to the importance of the subject, to receive a small deputation of those who would make important representations?

Mr. BUXTON

With pleasure.