HC Deb 08 December 1919 vol 122 cc896-7
26. Lieut.-Colonel Sir F. HALL

asked the President of the Board of Trade whether the attention of the Board had been drawn to the fact that a company called the Royalties Syndicate had year after year since 1914 included in its annual summary a statement in the form of a balance-sheet made up to 30th September, 1913; whether the Comptroller of the Companies Department, in a letter dated 23rd August, 1919, informed a debenture holder of the company that this filing of the same balance-sheet each year appeared to comply with Section 26 (3) of the Companies (Consolidation) Act, 1908; whether the opinion of the Law Officers had been obtained on this point; and, if they agreed with the Comptroller, whether steps would be taken to amend the Act so that it would no longer be possible for a company to frustrate the intention of the Legislature with regard to the disclosure of its financial position from year to year?

Sir A. GEDDES

The answer to the first part of the question is in the affirmative. In the year 1909, the Board of Trade obtained a legal opinion, and the letter referred to by my hon. and gallant Friend was in accordance with that opinion. In the event of legislation being introduced to amend the Companies Acts, the question of amending the law on this point will receive consideration.

Sir F. HALL

Does the right hon. Gentleman not think it necessary that steps should immediately be taken to amend the law in this way? Is he aware that the law was passed in order that the public and shareholders might know the position of the companies year by year? Can they do so under these circumstances?

Sir A. GEDDES

No Sir. I agree that this is a very serious blemish on the law, but obviously we cannot introduce a Bill at this moment to deal with this particular point. There are several other points in connection with these laws which, I think, will require attention at an early date. We shall try to do it all together.

Sir F. HALL

May I ask whether steps will be taken in the new Session to introduce a Bill in order to do away with such an injustice?

Sir A. GEDDES

I could not give a binding and formal undertaking. I hope so; I will do my best.