§ 4. Sir R. Boothbyasked the President of the Board of Trade whether his attention has been drawn to recent proposals on the part of boards of directors of joint-stock companies to remove part of the assets of their companies from the voting control of the shareholders, or to change the character and purpose of the companies without prior consultation with the shareholders; and whether he will consider introducing legislation to amend the Companies Actwith the object of protecting the rights of shareholders, and of strengthening their powers against arbitrary action on the part of boards which they consider inimical to their interests.
§ The President of the Board of Trade (Mr. Peter Thorneycroft)I am aware of the cases which my hon. Friend has in mind. I have no reason to think, however, that the remedies available under existing law are inadequate to protect shareholders against action by boards of directors which is ultra vires, or in breach of trust,or oppressive.