§ (1) The Public Trustee may, notwithstanding anything in any enactment to the contrary, if rules of the society, union, or branch are made for the purpose, be appointed as custodian trustee of the property of any society registered under the Friendly Societies Act, 1896, trade union, 169 or society approved for the purposes of Part I. of the National Insurance Act, 1911, or any branch of any such society or union, and any such appointment shall have the like effect as the appointment of the Public Trustee as custodian trustee of a trust under Section four of the Public Trustee Act, 1906.
§ (2) The appointment shall be made in such manner as may be provided by the rules, but the executive body of any such society, union, or branch may, pending the making of rules, appoint the Public Trustee as custodian trustee of any four-and-a-half per cent. War Loan Stock, 1925–1945, held by or on behalf of the society, union, or branch, as though it were so provided by its rules.
§ (3) This Section shall be deemed to have had effect as from the second day of July, nineteen hundred and fifteen.
§ (4) This Section shall not apply to Scotland.
§ Mr. MONTAGU
I beg to move to leave out Sub-sections (1) and (2), and to insert instead thereof the following new Sub-section,
The whole object of this Clause was to enable trade unions and friendly societies to invest in Government Stock. They were not able to do it in the past because the Bank of England would not accept an investment in the name of the trustees of the society, but only by the trustees of the society in their own name, and the stock had to be re-registered whenever the trustees of the society changed. Therefore, in conjunction with the trade unions and the friendly societies, we tried to draw the Clause as it appears in the Bill. Since then difficulties have arisen owing to the use of the words "custodian trustee." I submit to the Committee that this is a matter purely between the trade union interests and the Treasury. All we desire is that trade unions should invest their money, and it is therefore necessary to get the Clause into form with their wishes. Without going into a long explnation of the differences between the Clause and the Amendment, I am convinced the amended Clause will enable trade unions and friendly societies to invest their money. As the Clause stands they will still be shy of so doing.
- "(1) Notwithstanding anything in any Act to the contrary, any part of the funds of any registered friendly society or any branch thereof, or of any registered trade union or society approved for the purposes of the National Insurance Act, 1911, and any stocks, shares, or securities held by or on behalf of any such society, union, or branch may, if the Public Trustee agrees to such transfer and rules of the society, union, or branch are made for the purpose, be transferred to the Public Trustee.
- (2) The Public Trustee shall invest, in accordance with the rules, any funds so transferred to him, and shall pay the interest on any stocks, shares, or securities acquired by or transferred to him in pursuance of this Section to the trustees of the society, union, or branch; and shall, if and when so required by those trustees, transfer the capital of the stocks, shares, or securities to them, or realise the same and transfer the proceeds to them.
- (3) Pending the making of rules, any War Loan Stock, 1925–1945, held by or on behalf of any such society, union, or branch may, if the Public Trustee agrees to such transfer, be transferred to him
170 as though rules were made for the purpose.
- (4) The Public Trustee shall be completely exonerated from any liability in relation to any stock, shares, or securities held by him in pursuance of this Section, and no action shall lie against the Public Trustee in respect of any such stock, shares, or securities, provided that he acts in accordance with the provisions of this Section."
§ Amendment agreed to.