COMPANIES (ANNUAL) RETURNS. (Hansard, 6 August 1913)

Mr. F. HALL

I beg to move, "That leave be given to introduce a Bill to extend the period within which, under the Companies (Consolidation) Act, 1908, companies having a share capital are required to complete and send to the Registrar of Companies in each year a list of the members and a summary giving certain particulars respecting the financial position, etc., of the company, together with a statement in the form of a balance sheet."

At the present time the list and summary must be completed within seven 1496 days after the date fixed for making up the list, and it must be forthwith forwarded to the Registrar of Companies. I think I am right in saying that some thousands of companies are returned each year as having made default under this provision; but proceedings are taken under the present law only in a very limited number of cases. It may interest the House to know that in 1908 the defaults in respect to Returns in regard to which the companies concerned were circularised by the Registrar of Joint Stock Companies was 5,800, according to the figures obtained from the Board of Trade. Six hundred and sixty-two companies were struck off the register on the ground that they were not carrying on business, and yet I find that the Board of Trade only issued thirty-four summonses in respect of default of those not furnishing the particulars as required by Section 26 of the Act. The respective numbers in the same category for 1912 were 8,584, 1,549, and 22 only. It seems practically impossible for companies having many hundreds of shareholders, as many companies undoubtedly have, could possibly complete the required list and summary within the period allotted to them. So much is that the case, that the number in which prosecutions are taken is exceedingly small, and the number circularised as not having carried out the necessary regulations are not to be compared with the number of those summoned for not having carried out the obligation. I wish to make myself perfectly clear upon this point. The Board of Trade every year circularise a certain number, picked out apparently, of those who have not complied with the law, and, therefore, my idea is, that if it is necessary that some should be circularised, surely according to Section 26 the whole of those not making the return should be circularised. Take, for instance, 1912, in which 8,584 were circularised as not having complied with the law, but there were only twenty-two summonses. It seems perfectly obvious that some alteration is required. I think it is needless to say that if the information asked for is of a desirable nature proper time should be given for the companies to carry out their obligations, and if the law is left as it is at the present time it seems to me the whole thing is practically a dead letter. I believe I am right in saying that in some cases latitude has been granted by the Board of Trade to large companies, and those who have not 1497 carried out the necessary regulations. That seems proof positive that some alteration is recognised by the Board of Trade, at any rate they recognise that the time allotted at present is not sufficient to enable the companies to carry out the requirements of the law. The Bill I am introducing is a very short one, and I do not think it will be regarded by any hon. Member as contentious. Its object is by no means to stultify business in any way whatever, but it is for the purpose of protecting the shareholders of public companies. This subject was given great consideration when the Companies Act was established, and it has been deemed necessary that a certain time should be allotted. The object of this Bill is simply to extend the period from seven days to one calendar month, and I hope this proposal will be acceptable to the House.