§ 14. Sir Nicholas Grattan-Doyleasked the President of the Board of Trade whether his attention was drawn to the rejection of the proposal to infringe the rights of preference stockholders under the reorganisation of the Fine Cotton Spinners and Doublers Association; and, in view of the growing tendency to destroy the safeguards in contracts under which preference capital is raised. will he, when amending the Companies Act, 1929, abolish the use of preference stocks and shares in the future capital construction of limited liability concerns?
§ Mr. StanleyMy attention has been drawn to the fact that a scheme put forward by the Fine Cotton Spinners and Doublers Association, Limited, for modification of the rights of the preference stockholders was not approved. As regards the second part of the question, I would point out to my hon. Friend that the rights of preference shareholders cannot be varied except by a special resolution passed in acordance with Section 117 of the Companies Act, 1929, which provides that such a resolution must be passed by a majority of not less than three-fourths of the members affected who vote.