§ 71. Mr. Banfieldasked the President of the Board of Trade whether he is aware that the report of the Royal Commission, 1877–78, states that the Stock Exchange, London, is a merely voluntary association; and, in view of the circular letter, recently addressed by that institution to public companies, that when board meetings are called to consider the division of profits, they should notify the Stock Exchange of the dates of such meetings, and of any decision made thereat, before such is notified to the shareholders, and that dividends should not be paid before a specified date, will he state under which section of the Companies Act, 1929, these demands have to be met; and what steps he proposes to take in the matter?
§ The Parliamentary Secretary to the Board of Trade (Captain Waterhouse)The answer to the first part of the Question is "Yes, Sir." I am informed that the circular to which the hon. Member refers was not issued by the Committee of the Stock Exchange in pursuance of any statutory requirement but to meet the general convenience under existing conditions. I would point out that the request made in the circular is that particulars 199 of dividends recommended or declared should be communicated to the committee at the same time as to the financial Press and the usual Press agencies. My right hon. Friend does not consider that the circular referred to calls for any action on his part.
§ Mr. BanfieldWould the hon. and gallant Gentleman be prepared to take some action if it was proved that this particular type of circular was open to very grave abuse? People might use it for their own ends.
§ Captain WaterhouseCertainly; if there are abuses, we will take action, but I have a copy of the circular here, and it seems to me to be unobjectionable.