§ 8. Sir ARTHUR MICHAEL SAMUELasked the President of the Board of Trade whether, as 12 years have elapsed since a departmental committee was set up to examine the flaws in, and abuses of, the then limited liability company law, he will in the near future set up a similar departmental committee to examine the defects in the Companies Act, 1929?
§ The PRESIDENT of the BOARD of TRADE (Mr. Runciman)I can add nothing to the reply on this subject which I gave my hon. Friend on 17th December last, except to point out that the existing Companies Act did not come into operation until 1st November, 1929.
§ Sir A. M. SAMUELIs my right hon. Friend aware that it took five years from the time when the investigation began until the Bill became law, and will he note that as there are so many flaws in the 1929 Act, the public will hold his Department responsible if delay in amending the Act gives unscrupulous persons opportunities for again fleecing the public?
§ Mr. RUNCIMANIt is because of the many aspects of this case that there must be very careful consideration given to any proposal to alter the Act.
§ Mr. T. JOHNSTONIs the right hon. Gentleman aware of the public apprehension, which is growing, as a result of the bank nominee system and the abuses following from it, and cannot he take urgent steps to set up some kind of committee of inquiry as asked for by the hon. Member?
§ Mr. RUNCIMANWe are accumulating a good deal of evidence on this subject which will be available for whatever tribunal investigates it.
§ Sir A. M. SAMUELMay I press this fact upon my right hon. Friend, that it will take five years to complete the amending and that a start should be made now?