HC Deb 20 February 1934 vol 286 c185
19. Mr. CULVERWELL

asked the President of the Board of Trade what precautions are being taken by general statutory powers, or under the Companies Act, to render it difficult for unscrupulous persons to defraud the public by the flotation of fixed trusts on a limited liability basis?

Mr. RUNCIMAN

I would refer my hon. Friend to the reply which was given by my right hon. Friend the Chancellor of the Exchequer to the hon. Member for Aberdeen North (Mr. Burnett) on the 15th February.

Mr. BURNETT

May I ask whether a document offering for sale shares in a fixed trust is a prospectus; and whether the holder is entitled to the remedies under Section 37 of the Companies Act?

Mr. RUNCIMAN

That is a legal question to which I am not competent to reply.

Mr. BOOTHBY

Will the right hon. Gentleman undertake to look into the whole question of the relation between fixed trusts and the company laws?

Mr. RUNCIMAN

That has already been dealt with.