§ 8. Mr. Kenneth Bakerasked the Chancellor of the Exchequer what proposals he is considering for the reform of close company legislation.
§ Mr. DiamondThe Inland Revenue are about to discuss this matter with representatives of industry and commerce. I shall, of course, give full consideration to any proposals which are put forward.
§ Mr. BakerThe House and British industry will be glad to know that the Treasury is looking again at close company legislation. May I ask the Government, and the Chief Secretary in particular, to have regard to the present limitation upon the salaries which executive managers in close companies can earn, because for the larger close companies these are clearly inadequate?
§ Mr. DiamondI am sure that the hon. Member did not phrase his question precisely as he intended, because executive managers are under no disability of any kind and could earn whatever their employers thought they ought to be paid. I recognise that he is, in fact, speaking of directors. That is one of the matters which no doubt will come forward in the discussions which are to take place.