HC Deb 29 May 1968 vol 765 cc1807-8
14. Mr. Patrick Jenkin

asked the President of the Board of Trade how many limited liability companies have surrendered that status in each of the past two years other than those which have been liquidated.

Mr. Dell

Section 43 of the Companies Act, 1967, under which limited companies may be re-registered as unlimited, came into force only on the 27th October, 1967. From then until the 28th May, 1968, 1,355 companies have reregistered as unlimited.

Mr. Jenkin

Substantial though that figure is, does the Minister of State accept that the real damage is done in respect of companies which never come into existence because of the new disadvantages under which small companies now have to labour? Will he try to make an estimate of that and therefore revise the tax laws and company laws which are proving so damaging?

Mr. Dell

There is no evidence at all of any such damage. When we compare the figure of 1,355 with the probable estimate of 375,000 exempt private companies before the Act came into force, there is no evidence here of significant damage.