HC Deb 25 June 1947 vol 439 cc564-5

Amendment made: In page 33, line 11, after "authority," insert "or a composite company."—[Mr. Shinwell.]

The Solicitor-General

I beg to move, in page 35, line 35, at the end, to insert: (10) The following provisions shall have effect in the case of a composite company, that is to say:—

  1. (a) no part of the cash and investments of the company representing the net revenue of the company for the final financial period shall vest by virtue of this Act in an Electricity Board;
  2. (b) there shall be ascertained as soon as possible after the vesting date the amount required to enable the company to make payments of interest or dividend in respect of the final financial period on all their securities at the full rates permitted under the last foregoing Section, assuming that the statutory or other provisions relating to the company permitted payments of interest or dividend in respect of that period and due regard being had to any interest or interim dividend already paid in respect of that period; and
  3. (c) if the total value of all the cash and investments referred to in paragraph (a) of this Subsection exceeds the amount ascertained under paragraph (b) of this Subsection, the company shall pay to the Central Authority such part of the excess as bears to the whole thereof the proportion ascertained under paragraph (b) of Subsection (i) of the Section (Compensation to composite companies) of this Act."

Mr. R. S. Hudson

I should like to have an explanation of this Amendment.

Mr. Glenvil Hall

Briefly, this Amendment deals with a Clause with which the Committee is not yet familiar, and that does, of course, make our proceedings a little difficult, and for it, in so far as I am responsible, I apologise. Broadly speaking. Clause 22 provides that, after the vesting date and a company having been dissolved, the stockholders' representatives shall pay the dividends and interests to those entitled to them. Here, of course, with the composite companies, there will be no stockholders' representative and the Minister will deal direct with the company concerned. This Amendment makes the necessary alterations in this Clause to provide for that fact.

Mr. Hudson

We are obliged to the right hon. Gentleman, but he will not be surprised if I comment on how much simpler this procedure is than the other, and how much better it would have been, and how much time would have been saved, if he had applied this simple procedure to all other companies, instead of confining it to composite companies.

Amendment agreed to.

Clause, as amended, ordered to stand part of the Bill.