HC Deb 05 May 1966 vol 727 cc1866-7
Q9. Mr. Alfred Morris

asked the Prime Minister whether he will introduce legislation so to amend the Companies Act, 1948, as to make it illegal for a public company, without consulting its shareholders, to provide long-term finance for a private concern in which the directors of the public company have a personal interest affecting their remuneration.

The Prime Minister

My right hon. Friend the President of the Board of Trade is already considering what provisions might be included in the Companies Bill about these matters.

Mr. Morris

Would my right hon. Friend agree that this is a very serious and urgent matter? Is he aware that these directors have made for themselves a licence to print their own money and that, at the very least, it is not for them to lecture trade unionists on putting the national interest before their own private interests?

The Prime Minister

This is an important matter, but I am not convinced that it is necessarily an urgent one. My hon. Friend will have seen that the question of substantial financial gains out of this and other stock options was dealt with by my right hon. Friend the Chancellor of the Exchequer in his Budget Speech two day ago. As to disclosure to shareholders, this is a matter for my right hon. Friend the President of the Board of Trade, and he is considering it.

Mr. Barber

As the President of the Board of Trade has said that this legislation is urgent—he said that in the last Parliament—when will this Bill be introduced?

The Prime Minister

When it is ready and having regard to the even more urgent legislation which the House will be asked to pass ahead of it.