§ 42. Mr. Weatherillasked the President of the Board of Trade what is the policy of Her Majesty's Government towards the reduction of the number of privately-owned limited liability companies and their replacement by partnerships of unlimited status.
§ Mr. JayHer Majesty's Government consider that incorporation with limited liability is a privilege which carries obligations to the public, and intend to provide in the Companies Bill that all limited companies should file their accounts with the Registrar of Companies, and thus make them available for public inspection. It would be open 1540 to companies valuing privacy above limited liability to reregister as unlimited or to wind up and carry on as partnerships.
§ Mr. WeatherillDoes not the President of the Board of Trade recognise that the status of limited liability has been a very great benefit to British industry over the past 100 years and that very many of these companies are now having to go into unlimited liability, which is very difficult for them? Should not they be encouraged to retain their limited liability status?
§ Mr. JayThere is a strong case for saying that a company should choose between limited liability, on the one hand, and privacy, on the other.