§ 23. Sir A. M. SAMUELasked the President of the Board of Trade whether he will set up at an early date a Departmental Committee to consider amendments to deal with the defects and flaws in the Companies Act, 1929?
§ Mr. RUNCIMANIn accordance with the promise which I made in July last to the hon. Members for Cardigan (Mr. O. Evans) and North Tottenham (Mr. R. C. Morrison), I have given careful consideration to the question of instituting a fresh inquiry into company law amendment. I have, however, decided to defer such an inquiry for the time being. With my hon. Friend's permission, I will circulate in the OFFICIAL REPORT a statement of the reasons which have led me to this decision.
§ Sir A. M. SAMUELIs the right hon. Gentleman aware that when we asked for and obtained the inquiry in 1924 it took five years before we got the 1929 Act? If it is to take another five years before we get a new Act, is he prepared to leave the public unprotected all that length of time, and not even begin the Departmental inquiry now?
§ Mr. RUNCIMANA number of proposals which have been made in various quarters have been considered and are about to be adopted.
§ Mr. R. C. MORRISONDoes the right hon. Gentleman realise that many innocent people have been suffering serious financial loss because of delay in dealing with this matter?
§ Mr. RUNCIMANI do not think delay has anything to do with it. It is the dishonesty of those who swindle them.
§ Following is the statement:
§ It is recognised that the Companies Act in common with other large bodies of law needs review and revision from time to time in the light of experience and changing conditions. The question is whether the present time is appropriate for a general inquiry into the need for such revision. In this connection, it will be recalled that action is now pending on two matters which have a direct bearing upon company law. Legislation will be introduced as soon as practicable to give effect to the recommendations of the Departmental Committee on Fixed Trusts, 1498 including their recommendations on the subject of certain companies registered under the Industrial and Provident Societies Acts. By this legislation the requirements of the existing company law will be applied to a new field. An inquiry is also about to be set up into the urgent question of share-pushing, a question which also concerns certain important aspects of company law. In my opinion another Committee could not consider satisfactorily the question of the general amendment of the company law until legislation affecting these two matters is on the Statute Book. A further general inquiry will therefore be deferred until these matters have been disposed of.
§ 28. Sir A. M. SAMUELasked the President of the Board of Trade whether, in giving effect to recommendations of the Committee on Unit Trusts, prospectuses issued under the Industrial and Provident Societies Acts will be dealt with in relation to unit trust legislation; or whether he will arrange, when amending the Companies Act, 1929, that such prospectuses shall, in future, be subject to the provisions applicable to prospectuses and directorates already contained in the 1929 Act?
§ Mr. RUNCIMANThe recommendations of the Committee on Unit Trusts in regard to industrial and provident societies will be dealt with in relation to unit trust legislation.
§ Sir A. M. SAMUELWhat does "dealt with" mean? Are we to understand that there will be special legislation to deal with this matter? If not, what other method can there be except inclusion in the unit trust legislation?
§ Mr. RUNCIMANI cannot make any definite statement as to the future, but the whole matter is at present being pushed forward actively.
§ Mr. R. C. MORRISONHas the attention of the right hon. Gentleman been drawn to the fact that the Industrial and Provident Societies Acts are now being very freely used for purposes for which they were never contemplated when they passed through this House?