Company Law (Hansard, 8 April 1974)

§ 22. Mr. Baker
asked the Secretary of State for Trade when he expects to be in a position to announce his proposals for the reform of company law.

§ Mr. Clinton Davis
The issues involved in the reform of company law require thorough consideration and we are not yet in a position to say when our examination of them will be completed.

§ Mr. Baker
The Conservative Government's Companies Bill dealt with the specific abuses of insider dealing, late filing of company accounts and the warehousing of shares before a takeover. These abuses will not go away. What will the Government do about them?

§ Mr. Davis
We were not satisfied that those provisions dealt appropriately with the situation. There were other provisions in the Bill which had our support, but one must look at it as a whole. We are considering whether administrative reforms—affecting, for example, Companies House—should be separated from the general principles relating to the reform of company law as a whole. As I have said previously, we take the view that the framework of the Conservatives' Bill was far too narrow and contained rather a lot of window dressing.

§ Mr. Redmond
When the Government produce a Companies Bill, will they remember that small private companies are different animals from big corporations, and legislate accordingly so that they are not penalised?

§ Mr. Davis
We shall consider these matters very carefully.

§ Mr. Anthony Grant
Does the hon. Gentleman recall that, on the Second Reading of the Companies Bill in the last Parliament, the present Chancellor of the Duchy of Lancaster said that it was the Labour Party's view that there should be a Royal Commission to look into company law reform? When is that commission to be set up? Was that a pledge or a lightly given promise?

§ Mr. Davis
My right hon. Friend was putting forward a suggestion. We do not consider, as at present advised, that a Royal Commission is necessary, but the Department is considering the entirety of company law including the provisions contained in the Conservative Government's Bill and our view as to the widening of the total scope of company law so that workers' interests and individual interests are properly considered.