HC Deb 30 July 1956 vol 557 cc966-8

Lords Amendment: In page 13, line 38, at end insert: concerning the matters in respect of which the Registrar has given notice to him as aforesaid".

Mr. Walker-Smith

I beg to move, That this House doth agree with the Lords in the said Amendment.

I think it would be convenient also to consider the Lords Amendment in line 41 to leave out paragraph (a).

The Clause as drafted rather suggests that the Court itself will carry out the examination in the circumstances contemplated by subsection (2.) In practice, of course, the examination would not be carried out by the Court, which would not be in a position in any event to do so. The examination will be carried out by the Registrar, in the sense that he will put the questions to the persons who are before the Court. The purpose of these two Lords Amendments is to make that position clear. That brings the operation of the Clause into line with the appropriate precedent in Section 167 (4) of the Companies Act.

Sir L. Ungoed-Thomas

I am just wondering whether it is quite clear that examination may be done by interrogatories, despite the omission of paragraph (a) of subsection (2) as proposed. It seems to me that is the substance of the Lords Amendment, but whether it is or not I do not know, and I shall be grateful if the Parliamentary Secretary would let us know.

Mr. Walker-Smith

Yes, I think so. That, I think, will be governed by the remainder of the Clause and by the rules which the Registrar is entitled to make. I think the only practical effect of the alteration is to make it clear that the Court itself will not be examining the party. This is a clarifying Amendment, and does not, I think, make any change of substance in the way in which the examination can be carried out. It merely shows by whom it will be carried out.

Sir L. Ungoed-Thomas

I gather from the hon. and learned Gentleman's reply that it can be done by administering interrogatories. I understood the hon. and learned Gentleman to refer to regulations which the Registrar will make, but surely the Registrar will not make regulations which will deal with the process of examinations by the High Court? Surely, if any regulations are made about that, they will be Court regulations, will they not?

Mr. Walker-Smith

Yes. The rules of registration are the rules made by the Registrar. The rules affecting the procedure of the Court would not be made by the Registrar. I am much obliged to the hon. and learned Gentleman.

Further Lords Amendment agreed to: In page 13, line 41, leave out paragraph (a).

Lords Amendment: In page 14, line 18, at end insert: (3) Where notice under section thirteen of this Act has been given to a body corporate, an order may be made under this section for the attendance and examination of any director, manager, secretary or other officer of that body corporate; and in any such case—

  1. (a) the reference in subsection (1) of this section to matters in respect of which the Registrar has given notice to the person examined shall be construed as a reference to matters in respect of which notice was given to the body corporate; and
  2. (b) in paragraph (e) of the last foregoing subsection, and in paragraph (d) so far as it relates to evidence, references to the person examined shall include references to the body corporate."

Mr. Walker-Smith

I beg to move, That this House doth agree with the Lords in the said Amendment.

This Amendment, which inserts a new subsection, is designed to make an improvement in the procedure for dealing with cases of default in registration. As the House is aware, Clause 14, dealing with the power to examine a witness or party before the Court, is, in a sense, a follow up of the powers given to the Registrar under Clause 13 to serve notice where he "has reasonable cause to believe" that persons or trade associations may be parties to an agreement subject to registration. Clause 13 makes provision for the serving of these notices, including, in subsection (3), provision regarding trade associations.

Clause 14 make provision for the examination on oath, and says: In any case in which the Registrar has given notice to any person …the High Court may on the application of the Registrar order that person to attend…. Of course, a company is a person in the language of the law, and can have a notice served upon it, but it is, of course, apparent that, in addition to its traditional incapacity of a soul to be damned and a body to be kicked it has incapacity to attend a court and be examined on oath, and so this new subsection makes provision for the attendance of the requisite director, manager, secretary or officer of the body corporate to attend and be examined on behalf of the company.