COMPANIES ACT, 1929. (Hansard, 15 March 1933)

§ Sir ARTHUR MICHAEL SAMUEL

I beg to move, That this House, having been made aware of the losses sustained in recent years by private persons who have invested their savings in concerns organised under limited liability, requests the Government to set up a departmental committee to examine the provisions of the Companies Act, 1929, with a view to amending that Act so that in future the public may be protected against unscrupulous persons. As the House is aware, the whole country has been shocked, at the wholesale collapse of companies a year or two ago. I move this Motion in order that the President of the Board of Trade may think fit, not to try to find reasons why he should not act but to find reasons why he should act. I do not know why there should be any opposition to the proposal that we should have a Departmental Committee to look into the matter. I have here a copy of the recognised organ of the chartered accountants which says: The accounting profession is strongly in favour of reforming company law on the ground that existing legislation has proved itself to be inadequate. If we look forward to recovery in trade, it is necessary, as so many undertakings will be working under limited liability, that there shall be no more opportunity for unscrupulous persons to defraud the public as in the past. If the Board of Trade does not take some action, the public will hold it gravely to blame. I have heard dozens of questions put pointing out the very defects which we ask to have amended.