§ 8. Mr. T. JOHNSTONasked the President of the Board of Trade if his attention has been called to the conversion of financially insolvent societies into limited liability companies beyond the jurisdiction of the Chief Registrar of Friendly Societies; if, in particular, he has had his attention called to the affairs of the Mutual Thrift Society, Limited, of Southport, which has failed with total liabilities of £161,000; and what steps he proposes to take to prevent the future misuse of the Companies Act?
§ Sir P. LLOYD-GREAMEThe answer to the first part of this question is in the affirmative. There is a Clause in the Industrial Assurance Bill now before the House which, it is hoped, will bring companies of the kind indicated within the provisions of the Assurance Companies Act, 1909. This will involve their making a deposit of £20,000 before registration, and will also give jurisdiction to the Board to require annual returns to be made by such companies.
§ Mr. JOHNSTONIs the right hon. Gentleman aware that these mutual thrift societies will be able to escape the Clause to which he refers in the Bill before us, and is it not the case that the Chief Registrar drew attention, in his Report a year ago, to this particular organisation which is an amalgamation of 73 firms, all of them insolvent, and how long is this sort of thing to go on?
§ Sir P. LLOYD-GREAMEThe object of the Clause is to bring these companies within control by imposing special provisions upon them. The answer to the second part of the question is that we have taken the first possible opportunity, namely, the legislation now before the House, to deal with the matter.