CLAUSE 29.—(Removal of directors.) (Hansard, 28 July 1947)

§ The Solicitor-General
I beg to move, in page 24, line 15, at the end to insert: and the director (whether or not he is a member of the company) shall be entitled to be heard on the resolution at the meeting. (3) Where notice is given of an intended resolution to remove a director under this section and the director concerned makes with respect thereto representations in writing to the company (not exceeding a reasonable length) and requests their notification to members of the company, the company shall, unless the representations are received by it too late for it to do so—

(a) in any notice of the resolution given to members of the company state the fact of the representations having been made; and
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(b) send a copy of the representations to every member of the company to whom notice of the meeting is sent (whether before or after receipt of the representations by the company)

and if a copy of the representations is not sent as aforesaid because received too late or because of the company's default, the director may (without prejudice to his right to be heard orally) require that the representations shall be read out at the meeting. This Amendment is to meet the argument advanced by the right hon. Gentleman the Member for Bournemouth (Mr. Bracken) during the Committee stage. The effect of the Amendment is that where a special notice is given of a resolution to remove a director of a company, that director should have the right of requiring the company to circulate a statement of his own case with regard to the matter. This is similar to other provisions in other parts of the Bill. It simply gives him that right.

§ Mr. Bracken
I am much obliged to the Solicitor-General.

§ Sir S. Cripps
I beg to move, in page 24, line 15, after the words last inserted, to insert: Provided that copies of the representations need not be sent out, and the representations need not be read out at the meeting, if, on the application either of the company or of any other person who claims to be aggrieved, the court is satisfied that the rights conferred by this section are being abused to secure needless publicity for defamatory matter; and the court may order the company's costs on an application under this section to be paid in whole or in part by the director, notwithstanding that he is not a party to the application This is another manuscript Amendment.

§ Mr. Manningham-Buller
I think it would be ungracious of us not to express appreciation of the way in which the right hon. and learned Gentleman the President of the Board of Trade has met a point of substance we raised in Committee, and which we sought to deal with in much the same way by an Amendment that we put down. This is the last of three manuscript Amendments dealing with a particular point. I rise to express pleasure that the right hon. and learned Gentleman has seen fit to meet us. I think that with these three Amendments the Bill will be much more effective and better than before.