§ Mr. Glenvil HallI beg to move, in page 33, line 8, at the end, to add:
(10) This Section shall, in relation to any composite company, have effect subject to the following modifications: —564 This Amendment is essential because, later on, we are going to approve two new Clauses which deal with splitting where composite companies are concerned, and this Amendment applies the provisions of this Clause to the new set-up to which I think the Committee will agree. There is one slight difference to which I might call attention, and that is that, although this Clause subjects the new composite companies to the same restrictions and limitations, a company, in this case, and not the directors, will be liable for any infringement of rights. Recovery will only be possible on that part of the assets which is attributable to the electricity undertaking, and not some other part, such as gas, water, or whatever it may be.
- (a) Subsections (i), (4) and (5) shall only apply to payments and distributions made, and redemptions carried out, before the vesting date;
- (b) any liabilities arising under this Section shall be liabilities of the company and not of the directors; and
- (c)any such liability shall be reduced by applying thereto the proportion ascertained under paragraph (6) of Subsection (1) of the Section (Compensation to composite companies) of this Act."
§ Amendment agreed to.
§ Clause, as amended, ordered to stand part of the Bill.