HC Deb 06 February 1940 vol 357 c33
62. Mr. Pethick-Lawrence

asked the Chancellor of the Exchequer whether he is satisfied that the Capital Issues Committee is exercising due supervision over the issue of bonus shares?

Sir J. Simon

Yes, Sir. Each case is carefully examined.

Mr. Pethick-Lawrence

Is the right hon. Gentleman aware that, in this matter of bonus shares, the Committee have delegated their control to the sole discretion of the chairman; and, in view of the great importance of this question of issuing bonus shares and its bearing on national finance, does the right hon. Gentleman think that this is a suitable method of exercising their supervision?

Sir J. Simon

I do not know what the right hon. Gentleman has in mind in making this suggestion.

Mr. Benson

Does the right hon. Gentleman not think that the issuing of bonus shares is really a method of avoiding the payment of Surtax and other Exchequer obligations?

Sir J. Simon

The issuing of bonus shares may quite easily be a form of saving or of capitalising profits.