HC Deb 01 March 1938 vol 332 cc904-5
32. Mr. Johnston

asked the President of the Board of Trade whether he can state the total estimated losses to the investors in the London and Provincial Property Society now in liquidation; whether he is aware that the manager of this concern was an undischarged bankrupt; whether the directors have returned any of their fees or emoluments to the liquidator; and whether any further action is contemplated against the promoters and exploiters of this concern?

Captain Wallace

From the information at present available, it seems that the loss to the investors in this society may amount to about £28,500. The answer to the second part of the question is in the affirmative, and to the third, in the negative. As regards the last part of the question, the investigation into the affairs of the society has not yet been completed, and I cannot therefore say what action, if any, will be taken in the matter.

Mr. Johnston

In view of the repeated warnings which have been given to the Government about this concern, and in view of the tragic importance of this matter to very many people of limited means, could the right hon. and gallant Gentleman and the Government not take steps to expedite action in cases of this kind?

Captain Wallace

We have, as the right hon. Gentleman knows, legislation under active consideration dealing with the sort of matters raised in this question.

Mr. Bellenger

Is the right hon. and gallant Gentleman aware of the remarks made by the Official Receiver in liquidation proceedings that this is a glaring case which certainly needs the attention of the Board of Trade at the right moment to investigate some of the depredations which have taken place by these directors?

Captain Wallace

Yes, I am aware of these observations.

Mr. Johnston

Have the Government no power to prevent an undischarged bankrupt running concerns of this kind on to the rocks, which it may take some months to do?

Captain Wallace

Unfortunately, while an undischarged bankrupt is prevented from having charge of the management of a company registered under the Companies Act, there is no similar prohibition in the case of a company registered under the Industrial and Provident Societies Acts. Legislation to deal with these societies is one of the particular points which, as the right hon. Gentleman will remember, we discussed before Christmas