HC Deb 19 July 1966 vol 732 cc369-70
36. Mr. Bryant Godman

Irvine asked the Minister of Housing and Local Government why he has taken no action to protect the interests of shareholders in the distribution of assets of water companies where the distributions are contrary to the conditions of sale of the respective stocks, to the decisions of the High Court and to Section 302 of the Companies Act, 1948.

Mr. MacColl

No such action is called for. I am not aware of any instances in which assets have been distributed otherwise than in accordance with the wishes of the great majority of the shareholders.

Mr. Godman Irvine

Would the hon. Gentleman look at this matter, because he must he aware of the correspondence which I have placed before him in recent months? Is he not further aware that I have in my hand the prospectuses for two water companies, in both of which the distribution has taken place contrary to the original prospectus? Has he not read the two opinion of distinguished counsel which say that there are very real reasons for assuming that they have acted contrary to the conditions, and is it not time for him to look at this again?

Mr. MacColl

When my right hon. Friend makes a compulsory order he inserts no conditions about compensation in it.

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