§ 36 and 58. Sir JOHN FERGUSONasked the President of the Board of Trade (1) what steps he proposes to take to give effect to the Act of Parliament which requires public companies to make a return of their balance sheet and annual accounts within a specified time; and is he aware that on 30th April last 600 companies had failed to comply with the law four months after the prescribed date, notwithstanding repeated applications to them by the proper authorities;
(2) whether he will lay down regulations that in each future year, while the present relative Act is in operation, the Board of Trade shall, during the first week in every February, secure punctual compliance by public companies of the provisions of the law which requires the filing of annual reports and balance sheets?
§ 43. Captain AUSTIN HUDSONasked the President of the Board of Trade when he will be in a position to state by what methods he proposes to improve the system of securing compliance with the law by public companies which have failed to provide annual reports and balance sheets punctually within the period required by Statute?
§ Mr. W. GRAHAMThe consideration of this matter, which I promised in my reply last Tuesday to the questions by the hon. Member for Ilford (Sir G. Hamilton) and the hon. and learned Member for East Grinstead (Sir H. Cautley), will take some time, and I cannot at present say when a conclusion will be reached. The suggestion made by the hon. Member for Twickenham (Sir J. Ferguson) has been noted.
§ Sir J. FERGUSONWill the right hon. Gentleman push this to a head as soon as possible, in order to allay the feeling of great uneasiness which is prevalent among the investing public at the present time?
§ Mr. GRAHAMOh, yes. I think we can claim to have been very active in recent months. I informed the House that we have only acted from the end of 1624 January, and the number of cases in which there has been delay or default has been very considerably reduced in that short period.
§ 42. Lieut.-Colonel HENEAGEasked the President of the Board of Trade whether the new system by which he proposes to protect the public by ensuring punctual compliance with the provisions of the law, which require that public companies shall furnish annual reports and balance sheets within a certain period, shall be put in motion by the Board of Trade on its own initiative, without a shareholder being expected to take police court proceedings or without the attention of the Board of Trade being drawn to the matter by a question in Parliament?
§ Mr. GRAHAMIt has always been the practice of the Board of Trade, on the receipt of reports by the Registrar that companies are in default in regard to the filing of the annual return, to take the necessary action to ensure compliance with the law, and accordingly no alteration of practice in this respect is necessary. Any action taken by the Board of Trade does not, however, deprive a shareholder of his right to institute proceedings under the Statute to protect his own interests.
§ Lieut.-Colonel HENEAGEWill the right hon. Gentleman bear in mind that, in the case of some companies, it is very hard for the shareholders to take action, and will he arrange for his officials to take action in the case of any companies that are notoriously slow in this matter?
§ Mr. GRAHAMI have already indicated that in recent times we have been very active, and that will continue; but I think it would be altogether wrong to go so far as to relieve shareholders of their plain duty in this matter.