HC Deb 07 July 1936 vol 314 cc1016-7
24. Mr. OWEN EVANS

asked the President of the Board of Trade whether he is aware that on numerous occasions public bodies representing commerce and finance have asked for a review of the Companies Act, 1929, in order that the public may be protected against misuse of the limited liability system, as disclosed in recent scandals; and whether he will reconsider his decision and arrange for an early re-examination of the 1929 Act?

25. Mr. R. C. MORRISON

asked the President of the Board of Trade whether he is aware that the Board already possesses a great quantity of material showing the inefficiency of some of the provisions of the Companies Act, 1929; and, as it will take at least two years to examine and report upon the material, will he at an early date appoint a departmental committee to begin the examination and call witnesses?

Mr. RUNCIMAN

I am aware of the representations that have been made from time to time in favour of a fresh inquiry into company law. As I have previously stated, I am not convinced that the time is ripe for such an inquiry, but it is my intention again to examine the question in all its bearings before the end of the year. In the meantime material is accumulating, and is being examined as and when opportunity offers.

Sir ARTHUR MICHAEL SAMUEL

Is the President of the Board of Trade aware that the public bodies to which he has referred have already expressed their opinion that there is no justification for the delay in setting up a departmental committee to deal with this matter?

Mr. GRENFELL

Will the right hon. Gentleman consider, in view of the evidence accumulated in his Department, the publication of the material which is coming forward, in order that the public may be advised of the importance of this question?

Mr. RUNCIMAN

If the hon. Gentleman will put a question on the Paper in those terms, I will do my best to give him an answer.

Mr. ATTLEE

May I ask how big a scandal will be necessary before the time is ripe?

Mr. R. C. MORRISON

Is the right hon. Gentleman aware that the answer he has just given practically amounts to an invitation to certain large-scale swindlers to continue swindling the public?