§ 5.17 p.m.
§ The Solicitor-GeneralI beg to move, in page 6, line 20, after "and," to insert:
in particular, but without prejudice to the generality of the preceding provisions of this Sub-section.The object of the Amendment is that the Board of Trade shall not be restricted when it frames rules to the matters that follow in paragraphs (a), (b), and so on. They want to have a perfectly free hand to be able to make rules generally prescribing how the business should be carried on.
§ Amendment agreed to.
§ 5.18 p.m.
§ Mr. SpensI beg to move, in page 6, line 26, to leave out paragraph (b), and to insert:
(b) for prescribing forms of contracts which may be used in making contracts under the authority of a licence, and directing that where any contract is made under the authority of a licence otherwise than in the appropriate form prescribed by the rules, the holder of the licence shall, for the purposes of the preceding provisions of this Act relating to the refusal and revocation of licences, be deemed to have committed a breach of the rules.This is a matter which I mentioned in Committee. As the Bill stands, it might be that under the rules authorised for determining the form of a contract with persons who sell stocks and shares otherwise than strictly in accordance with the rules, a transaction might be found void, and in fact the persons might be committing an offence under the Act. In those circumstances the modification proposed is that the rules may prescribe the forms of contract which may be used and direct that where any contract is made under the authority of a licence otherwise than in the appropriate form prescribed by the rules the holder of the licence shall be deemed to have committed a breach of the rules.
§ Mr. DuncanI beg to second the Amendment.
§ 5.20 p.m.
§ The Solicitor-GeneralI am much obliged to my hon. and learned Friend. I think his Amendment certainly effects an improvement. The consequence to third parties of invalidating a contract would be very serious. The proper penalty for a breach of rules is one imposed on the person who breaks the rules, and this Amendment will ensure that minor breaches of the rules will be matters merely of breaches of rules and will not invalidate a contract. I recommend the House to accept the Amendment.
§ Amendment agreed to.
§ 5.21 p.m.
§ The Solicitor-GeneralI beg to move, in page 7, line 4, at the end, to insert:
(2) A person shall not be guilty of an offence by reason only of a breach of rules made under this Section.This is in a way a supplementary part of the Amendment that the House has just carried. A breach of statutory rules is a Common Law misdemeanour, and the proper way to deal with breaches of rules is to revoke the licence.
§ Amendment agreed to.