§ Order for Second Reading read.
§ 4.32 p.m.
§ The Attorney-General (Sir Donald Somervell)I beg to move, "That this Bill be now read a Second time."
This Measure, which is on the lines of legislation which was passed in the last war, enables trustees, personal representatives and other persons who have functions connected with the administration of trusts to delegate their functions, in cases where they may be unable themselves to act either because they have undertaken some form of war service or because they are out of the United Kingdom and, owing to the war, it is not practicable for them to return. This Bill goes rather further than the legislation in the last war in extending the definition of war service to include those who are members of the Mercantile Marine and men who are engaged on war work outside the United Kingdom.
The Bill is necessitated by the general principle in law that persons such as trustees to whom duties have been entrusted may not themselves, save in very exceptional circumstances, delegate those duties to third parties. The circumstances brought about by the war and the necessities of the case of men serving overseas demand that we should make some inroads upon that general principle. The Bill has been carefully considered with a view to seeing that it covers the various cases which might arise. Clause 1 is the main operative Clause. Clause 2 deals with the liability of the donor and donee. Other Clauses make special provision for the transfer of stock, a matter which is frequently necessary in the course of trust administration. The House will find the definition of war service in Clause 7.
§ Mr. Pethick-LawrenceI do not think I need say anything upon this Measure, which appears to be a sound and necessary one, but perhaps the Attorney-General could tell us whether, as far as he knows, any difficulty in connection with the similar legislation did arise during the last war.
§ 4.34 p.m.
§ Mr. SpensI wish to raise one point on Clause 2. I am not sure whether it was raised in the Upper House by one of the Law Lords or not, but it does involve a point which requires very serious consideration. This Bill is becoming law in the sixth week of the war and, as we have just heard, the Expeditionary Force has been going abroad ever since the first week of the war. Until this Bill becomes law there is no power by which a trustee can appoint an attorney except under the Trustee Act, 1925, and that Act expressly provides that anyone who takes advantage of it to appoint an attorney remains liable for every act of the attorney. Clause 2 reverses that position, and says that in the case of any appointment made under this Measure which is made in good faith and without negligence the appointor shall be free from liability for what may be done by the acting trustee whom he has appointed.
It is no fun being a trustee in time of war. The Government require a trustee to do all sorts of things which he never has to do in peace-time, and the responsibility of the person who in good faith and without negligence has appointed somebody else under the Trustee Act remains very great and onerous. In the circumstances I ask my right hon. and learned Friend to consider whether, in justice to the numerous appointments which have been made under the Trustee Act during the first six weeks of the war, it would not be possible to add a Subsection to this Clause providing that appointments which have been previously made, if made because the trustee was going abroad for war service, should be deemed to have been made under this Measure and the trustee should receive the same protection.
§ 4.37 p.m.
§ The Attorney-GeneralWe did consider whether it was possible to make this Bill retrospective, but the difficulties were found to be insuperable, but it is hoped that arrangements may be made, which will have to be made by Statute under this Bill, to facilitate the execution of further powers of attorney by those who may now be overseas. In regard to the point made by the right hon. Member for East Edinburgh (Mr. Pethick-Lawrence), we did consider carefully with those who had experience of it the results of the 373 working of similar legislation in the last war, and the suggestions they made as the outcome of that experience have been embodied in this Bill, which, we hope, is an improvement upon the other Measure.
§ Question, "That the Bill be now read a Second time," put, and agreed to.
§ Bill read a Second time.
§ Motion made, and Question, "That this House will immediately resolve itself into the Committee on the Bill," put, and agreed to.—[Captain Dugdale.]
§ Bill accordingly considered in Committee.
§ [Sir DENNIS HERBERT in the Chair.]
§ Clause 1 ordered to stand part of the Bill.