§ Order of the Day for the House being put into Committee on this Bill read.
§ * THE LORD CHANCELLOR (The EARL OF HALSBURY)My Lords, it will be more in order to go into details with regard to the provisions of this Bill on the Third Reading. I will simply say now that the Select Committee to whom the matter has been referred thought it well to rely rather on provisions intended to prevent, if possible, the making of fraudulent companies than on the infliction of pains and penalties on persons who were engaged in the conduct of companies afterwards. They thought it more prudent to see that in the initiation of new companies certain precautions should be adopted to prevent their beginning business until they have sufficient capital, and that will be effected by a provision against allotment until a certain proportion of the capital has been subscribed. Furthermore, the Select Committee have thought it right that persons put forward as directors of a company should, by some act of their own, recognise the responsibility they have assumed, and be called upon to sign a decaration that they are, and intend to be, directors of the company of which they are advertised as directors. In the deliberations of the Committee, which have lasted three years, they have arrived at practical unanimity. There certainly has never been a better Committee constituted, in respect of its legal elements, its business elements, and its general knowledge of the world, and I think I may say the three years during 1350 which they have sat have not been thrown away when they have arrived at practical unanimity with regard to a subject so important to the mercantile community. I shall go more minutely into the provisions of the Bill at a later stage, but I thought it necessary to say these few words on the present occasion.
§ House in Committee (according to Order); the Amendments proposed by the Select Committee made; Standing Committee negatived; the Report of Amendments to be received on Friday, the 28th inst.