16. Lieut.-Colonel SANDEMAN ALLENasked the President of the Board of Trade whether, in order to assist the London Stock Exchange in its efforts to prevent exploitation of the investing public by abuse of Stock Exchange facilities, he will, before amending the Companies Act, 1929, request the committee of the London Stock Exchange to provide him with their suggestions for safeguards in the flotation and management of fixed investment trusts?
§ 23. Captain ARCHIBALD RAMSAYasked the President of the Board of Trade whether he will consider introducing legislation when amending the Companies Acts so as to require that, before the London Stock Exchange Committee grant quotations to the shares of fixed investment trusts, it shall be compulsory for managers of those trusts to publish profit-and-loss accounts and balance sheets showing management and other expenses for all invitations for subscriptions for such shares, and to make it clear to the public that the trustees, whose duties are restricted to being custodians of the securities and to ensuring that the number of units is correct, are not responsible for the management?
§ Mr. RUNCIMANThe suggestions of my hon. and gallant Friends have been noted for investigation when the amendment of the Companies Act is under consideration.
Lieut.-Colonel SANDEMAN ALLENCan my right hon. Friend say when he expects an amendment of the Companies Act to be under consideration?
§ Mr. RUNCIMANIt is constantly under review, but I cannot give any date when an amending Bill will be introduced.
§ Captain RAMSAYHas my right hon. Friend any information which proves that with offers of subscription of this kind of stock a large section of the public is deceived by the form of the prospectus as to who are the real managers?
§ Mr. RUNCIMANI am afraid I cannot say as to the deception which may or may not be practised on the general public. A point of that kind is one which must be taken into consideration in amending the Companies Act.
§ Captain RAMSAYWill the right hon. Gentleman call upon the Stock Exchange Committee to furnish a report on the subject in order that he may consider the Amendment of the Companies Act?
§ Mr. RUNCIMANI will consider that point.