HC Deb 12 April 1938 vol 334 cc923-4
39. Mr. Gallacher

asked the President of the Board of Trade whether he is aware that the provision that the name of the real holder of shares in a limited liability company shall appear with his address in the records at Somerset House is now violated by the device of registering shares in the name of a nominee company; and whether he can assure the House that he will take early steps to amend the Companies Act to prevent any further extension of this practice?

Captain Wallace

There is no legal requirement that the name of the beneficial owner of shares in a limited company shall be entered in the Register of Members, and indeed Section 101 of the Companies Act, 1929, provides that no notice of any trust, express, implied or constructive, shall be entered on the Register or be receivable by the Registrar of Companies registered in England. Any liability or obligation attaching to a share falls to be met by the person in whose name the share is registered. The point has, however, been noted for consideration when the amendment of the Companies Act is under review.

Mr. Gallacher

In view of the fact that this practice can be very dangerous and at the same time provide an opportunity for hidden forces to operate through nominee companies, will the right hon. and gallant Gentleman take steps to do something in the matter?

Captain Wallace

I can only say that it is a matter for consideration when amending the Companies Acts.

Mr. H. G. Williams

What are the names of the real shareholders in Arcos, Limited?

Mr. Macquisten

Why should we encourage Nosey Parkers?

Mr. Johnston

Will the right hon. and gallant Gentleman not forget that the complaint embodied in the question is a very serious one, and that the device of nominee companies is used as a cloak for fraud, occasionally, at any rate?

Captain Wallace

This matter has been carefully noted by my right hon. Friend for consideration when it is possible to legislate on the subject.

Mr. Benson

When will that be?

42. Mr. Bellenger

asked the President of the Board of Trade what progress he has made in the preparation of the Bill dealing with the reform of the Companies Acts which he has promised to introduce as soon as possible; and whether he proposes to deal with the law relating to property societies in this Bill?

Captain Wallace

Considerable progress has been made with the preparation of the Measure to deal with share-pushing and similar activities, which I outlined in the Debate on 15th December. It is intended that this Measure shall include a provision to deal with the abuses which have arisen in connection with certain societies registered under the Industrial and Provident Societies Acts.

Mr. Bellenger

While I note with pleasure the progress which the right hon and gallant Gentleman has made, does he anticipate that this Measure will be introduced this Session?

Captain Wallace

That is a question which should not be addressed to me.

Mr. Petherick

Will the Minister make the long title of the Bill as wide as possible?