HC Deb 18 July 1933 vol 280 cc1657-8
9. Mr. NEIL MACLEAN

asked the President or the Board of Trade whether he will introduce legislation to amend the Companies Act so that, in any case where a director is appointed to the board of a company by a bank which has given financial advances to the company, only a person who possesses technical knowledge and practical experience of the industry concerned shall be appointed to such a, position?

Dr. BURGIN

The hon. Member's suggestion has been noted.

Mr. MACLEAN

Having noted it, will the hon. Gentleman put it into operation?

Dr. BURGIN

It is the practice to take note of suggestions for alteration of the Companies Act, and, from time to time, to review them all with a view to the consideration of a new Bill. The hon. Gentleman's suggestion has been included among the number for the purpose of being looked at when the occasion arises.

Mr. MACLEAN

In view of the fact that some companies in the present crisis have received money from the banks in order to be able to carry on, how soon does the hon. Gentleman suppose that this particular suggestion is likely to he acted upon?

Dr. BURGIN

In none of the cases called to the attention of the board has objection been taken to the actions of directors nominated by banks except on financial grounds.