70. Mr. F. HALL (Dulwich)asked the President of the Board of Trade if his attention has been called to the action recently brought against the directors of the Essequibo Rubber and Estates Company in connection with misstatements contained in the company's prospectus; 1945 if he is aware that, although the Companies Act attaches a liability to every person who has authorised the issue of a prospectus, it was held that the brokers had not authorised the issue in this case; and if it is proposed to take any steps with a view to defining more clearly the liability under the Companies Act of all persons responsible for issuing prospectuses and whose names appear thereon as guarantees of security?
§ Mr. BURNSI have seen a report in the Press of the proceedings in the case referred to by the hon. Member, from which it appears that the jury found that the brokers had not authorised the issue of the prospectus, and judgment was given in their favour. The, question whether the issue of a prospectus has been authorised by any person is one of fact, and, as at present advised, I do not propose to introduce legislation to alter the provisions of Section 84 of the Companies (Consolidation) Act, 1908.