§ 12. Sir JOSEPH LAMBasked the President of the Board of Trade whether he will request the Official Receiver appointed under the compulsory liquidation of the Parent Coal Carbonisation Trust, Limited, to ascertain and report whether the directors of this company have been members of boards of other companies which have turned out to be failures involving contributories and investors in loss, in order that when the facts are known future legislation may be 630 prepared to protect the public against directors who take no active part in the management of their companies?
§ Mr. RUNCIMANI have no power to direct the Official Receiver to inquire into the conduct of individual directors, that is to say, conduct which is not related to the affairs of the particular company in compulsory liquidation.
§ Sir J. LAMBDoes not the right hon. Gentleman think the time has come when action should be taken to protect the investing public from being exploited by guinea-pig directors?
§ Mr. RUNCIMANThat is the object of the Companies Act, and, in so far as it requires amendment, we are constantly considering suggestions that are made to us.
§ 16. Sir J. LAMBasked the President of the Board of Trade whether his attention has been called to the compulsory liquidation of the Parent Coal Carbonisation Trust, Limited, in which the Official Receiver states that the board ought never to have gone to allotment, and that there is a deficiency of £604,612 as regards contributories; and will he state whether proceedings are to be taken against the directors?
§ Mr. RUNCIMANMy attention has been called to the observations of the Official Receiver on the Statement of Affairs of this company. The Official Receiver has, however, not yet completed his investigations and I am therefore not in a position to say what, if any, action will be taken as a result of such investigations.