HC Deb 07 April 1970 vol 799 cc410-2
Mr. Hoy

I beg to move Amendment No. 17, in page 19, line 36, at end add: (2) After the passing of this Act, nothing in the said scheme shall have effect so as to require the election of new members to the said Board; and the said Board may, by a resolution passed at any time before 31st March 1971, extend until the making of an order for the winding-up of the Board the term of office of any elected or co-opted member whose term would otherwise expire at the end of that day. (3) The Board aforesaid may at any time before a petition for the winding-up of the Board is presented pass a resolution providing for the disposal on the winding-up of the Board of any assets of the Board remaining after the discharge of the debts and liabilities of the Board and the payment of the costs, charges and expenses incurred in the winding-up, being provision either—

  1. (a) for the transferring of those assets to a person or persons specified in the resolution for use by those persons for purposes so specified, being purposes which appear to the Board to be for the general benefit of persons engaged by way of business in the production of eggs; or
  2. (b) for the distribution of those assets among such of the persons registered as producers under the scheme aforesaid as may be specified in the resolution in such proportions as may be so specified,
and any such resolution may make different provision according to the amount of those assets to be disposed of; and where such resolution has been passed as aforesaid by the Board, then, notwithstanding anything in the Companies Act 1948, the assets remaining as aforesaid shall be disposed of in accordance with the resolution. The Amendment deals with the problem arising from the fact that three of the 17 elected members of the Board are due to retire on 31st March, 1971. Under the scheme as it stands the Board would be required some months before 31st March, to make provision for election of members to replace those due to retire on that date. Deferment of the date would not necessarily make this requirement without effect. It is clearly undesirable that the board should be under any obligation in relation to election of members for a term starting after the scheme has been revoked, and the board has asked to be relieved of it.

The Amendment is intended to do this. At the same time it would empower the board to pass a resolution extending the terms of office of the three elected members who would otherwise retire on 31st March, 1971. This would make it possible for them to retain their membership until the winding-up order is made by the court. Ministers' members of the board are also due to retire on 31st March, 1971, but there is no need to provide in the Bill for extension of their terms of office; this can be done—if the members agree—by Ministers under their existing powers.

The Bill as it stands would leave unchanged the provisions in the Agricultural Marketing Act, 1958 and the scheme for the winding-up of the board, which would therefore proceed in accordance with Part IX of the Companies Act, 1948 which, in its application to the board, is modified by paragraph 4 of the Second Schedule to the Agricultural Marketing Act, 1958.

I am sorry that the hon. and learned Member for Northwich (Sir T. Foster) finds this amusing. I have always looked on him as a good lawyer, and I thought that I was doing well.

Under these provisions the court would decide the disposal of any surplus remaining after the debts and liabilities of the board, and the costs and expenses of winding it up, had been met.

The board has represented to us that it is only reasonable that it should have a say in the disposal of the surplus. We agree with this, and the position would be met by the Amendment. It would empower the board, subject to certain conditions, to pass a resolution before its winding up petition was presented, determining the disposal of the surplus, whether by distribution among producers or by transfer to some person or organisation to be used for the general benefit of the egg production industry.

The resolution could provide for alternative methods of disposal, depending upon the amount of the final surplus as determined when the winding-up was complete. All these provisions are necessary as a consequence of the revocation of the scheme and would be welcomed by the board.

12 midnight.

Mr. Peter Mills

We welcome this Amendment. It is a wise move that no new members of the board should be appointed and that the term of office of the present members should be extended until it is finally wound-up.

The distribution of the assets when the board is finally wound up must be carefully handled and must be seen to be carefully handled. This is a producers' organisation. They have paid into it, as it were, and in a sense its assets are theirs and should therefore be distributed amongst them. I am not too happy about the phrase in the Amendment, ߪto a person or persons… I would rather have these assets distributed to registered producers, which would seem a better way to do it. I hope that the Minister will consider carefully how this is to be done. It must be clear that the assets are being distributed fairly, and to distribute them to registered producers would be the best way. Apart from that, we welcome the Amendment, which is a wise move.

Amendment agreed to.

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