70. Mr. GRENFELLasked the Chancellor of the Exchequer whether, in view of the collapse of James and Shakespeare, Limited, within six months of the public issue, he will take steps to ensure that the official control of new issues will be exercised with greater regard to the nature of the business to be promoted by the companies responsible for fresh issues of capital?
§ Mr. COOPERThe hon. Member is under an entire misapprehension if he thinks that the issue in question either needed or received Treasury approval. The so-called official control of new issues relates only to foreign issues and to the optional replacement of existing trustee securities by new issues ranking as trustee securities. Even in the case of foreign issues which are referred to the Treasury they accept no responsibility for statements made in the prospectus and they require the promoters to state that fact clearly on the face of the prospectus itself. My right hon. Friend does not propose to make any alteration in these arrangements.
§ Mr. WILMOTWill the hon. Member bring to the notice of the Chancellor of the Exchequer the necessity for introducing some legislation to cover this matter, in view of the fact that the Stock Exchange Committee, which is the only present form of control, gave permission to deal in these shares, which are now utterly valueless?