HC Deb 27 March 1963 vol 674 cc1406-8
Mr. Green

I beg to move, in page 7, line 1, to leave out from "given" to end of line 2 and to insert: to any person under subsection (3) shall be deemed to have been given to that person if sent to him by post at his last known address".

Mr. Speaker

I think that it might be convenient to consider with this Amendment the Amendment in page 11, line 6, to leave out "may be served by post" and to insert: shall be deemed to have been given to a person if sent to him by post at his last known address.".

The Economic Secretary to the Treasury (Mr. Edward du Cann)

I am most grateful to you, Mr. Speaker, for that suggestion. This is very largely a technical matter, and I hope that the House will feel that both Amendments make very good sense.

The first refers to the notice that a company is required to give to its existing depositors and to new depositors if it has informed the registrar and the Board of Trade it has ceased to advertise for deposits in order to be free, in due course, from the obligation to deliver periodic accounts. Clause 7 is what I think was called in Committee the exit Clause. The second of the Amendments refers to the notices that a company is required to give or may elect to give to its depositors when it changes or intends to change the nature of its business.

I think that the purpose of Clause 12 will also be remembered by those on the Committee. Its insertion was very largely due to the expressed wish of hon. Members on both sides of the Committee that we should take account of that particular circumstance. As drafted, the Bill provides that the notices under Clause 7 may be given and served by post. The effect of these provisions—this really is the point—when read with Section 26 of the Interpretation Act, 1889, is, I am advised, that notices would prima facie fall to be treated as having arrived in the normal course of post, and if in fact a notice failed to reach a depositor because, for instance, he was no longer living at the address to which it had been sent, the company might be held to have failed to discharge its statutory duty imposed on the company by the Bill, and therefore to have committed a criminal offence.

I am sure that it will be the agreement of the House that this matter should be dealt with reasonably and sensibly. The drafting as it at present stands does not seem to give the kind of result which, I think, would be regarded in the view of the House as being fair. Therefore, I suggest that it is necessary for us to look at the matter in a practical fashion and endeavour to put it right. I should like to say a few words on that point.

Notices of the kind that I have described may have to be sent to a large number of persons, some of whom may not have been in touch with the company for some months. In these circumstances, the company would do all that would reasonably be required of it, the House may think, if it were required to send notices by post to the addresses last known to it. This will be the position if these two Amendments are accepted. I hope very much that they will have the approval of the House.

Amendment agreed to.