§ [Nos. 214–260]
§ Clause 71, page 67, line 17, leave out subsection (1) and insert—
("(1) Every insurance company to which the principal Act applies which is a body corporate shall, upon a person's becoming or ceasing to be, an officer of the company, or acquiring or relinquishing control of the company, be under obligation to notify the Board of Trade in writing of that fact and of his name, and every insurance company to which the principal Act applies which is not a body corporate shall, upon a person's becoming or ceasing to be, an officer of the company, be under a corresponding obligation.")
§ After Clause 71, insert the following new clause—
§ Obligation of person who acquires or relinquishes control of insurance company to notify it of that fact.
§ (".—(1) A person who acquires or relinquishes control of an insurance company to which the principal Act applies, or if it is a body corporate, of another body corporate which is its holding company (within the meaning of the Companies Act 1948), shall, before the expiration of the period of 1269 seven days beginning with the day next following that on which he does so, notify the company in writing of that fact and, if he fails so to do, shall be liable—
- (a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both;
- (b) on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding £200, or to both.
§ (2) Subsection (4) of section 71 of this Act shall have effect for the purpose of this section as it has effect for the purposes of that section.")
§ Clause 72, page 68, line 5, leave out ("50") and insert ("(Authorisations for purposes of section 49)")
§ Clause 72, page 68, line 11, leave out paragraph (b).
§ After Clause 72, insert the following new clause—
§ Penalty for non-compliance with Part II of the principal Act
§ (".—(1) An insurance company which makes default in complying with a requirement of this Part of this Act, being a default for which no express penalty is provided, or makes, after the passing of this Act, default in complying with a requirement of the principal Act shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding £200.
§ (2) Section 26(2) of the principal Act (default by a company in complying with a requirement of that Act, if continued for three months after notice thereof, to be a ground for winding up the company) shall cease to have effect.")
§ After Clause 72, insert the following new clause—
§ Penalty on industrial assurance company for non-compliance with enactments relating to industrial assurance.
§ (".—(1) An industrial assurance company (within the meaning of the Industrial Assurance Act 1923) which, after the passing of this Act,—
- (a) contravenes or fails to comply with any of the provisions of the Industrial Assurance Act 1923, the Industrial Assurance and Friendly Societies Act 1948 or Part VI of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951, of regulations made for the purposes of section 8 of the said Act of 1948 or of regulations made under section 57 of the said Act of 1951;
- (b) contravenes or fails to comply with any directions given under the Industrial Assurance Act 1923 by the Industrial Assurance Commissioner;
- (c) contravenes the proviso to section 1(1) of the Industrial Assurance and Friendly Societies Act 1929 (which proviso limits the sums which may be insured or paid for funeral expenses);
- (d) fails to comply with a claim made in accordance with the provisions of subsection (1) of section 3 (rights of certain
1270 endowment policies) of the last-mentioned Act; or - (e) issues such a premium receipt book as is mentioned in subsection (3) of the last-mentioned section which does not comply with the provisions of that subsection;
§ (2) Such a company shall not be guilty of an offence under this section consisting in its insuring in contravention of subsection (2) of section 2 of the Industrial Assurance and Friendly Societies Act 1948 (power to insure life of parent or grandparent for not more than £30) if it is proved that, owing to any false representation on the part of the proposer, the company did not know that the insurance was in contravention of that subsection.
§ (3) A company guilty of an offence under this section shall be liable, on summary conviction, to a fine not exceeding £200.
§ (4) So far as regards section 3(1) of the Industial Assurance and Friendly Societies Act 1929, this section shall not prejudice any liability of a company subsisting otherwise than by virtue of this section.")
§ After Clause 72, insert the following new clause—
§ Penalty on friendly society for offence under Industrial Assurance Act 1923.
§ (".—The maximum penalty that may be inflicted on a society registered under the Friendly Societies Act 1896, being a friendly society within the meaning of that Act, for an offence under the Industrial Assurance Act 1923 committed after the passing of this Act shall, instead of being a fine not exceeding £100 or, in the case of a continuing offence, a fine not exceeding £50 a day during which the offence continues, be a fine not exceeding £200; and accordingly, section 39(1) of the said Act of 1923 shall, in relation to an offence under that Act so committed by a society so registered, being such a friendly society as aforesaid, have effect with the substitution, for the proviso thereto, of the following proviso:
§ 'Provided that the maximum penalty that may be inflicted for an offence under this Act shall be a fine not exceeding £200'.")
§ Clause 73, page 68, line 38, leave out from ("of") to ("who") in line 39, and insert ("any such body as is mentioned in paragraphs (a) to (e) of section 67(1) of this Act or a body other than as aforesaid, being an insurance company, to which the Insurance Companies Act 1958 applies ")
§ Clause 73, page 68, line 42, leave out ("company") and insert ("body")
§ Clause 73, page 69, line 2, leave out ("company") and insert ("body")
§ Clause 73, page 69, line 8, leave out ("who is")
§ Transpose Clause 73, as amended, to after Clause 89 as Part IIA of the Bill.
§ Clause 74: leave out Clause 74.
§ Clause 76, page 70, line 43, after ("directions"), insert ("or instructions")
§ Clause 79, page 71, line 18, leave out ("or of a registered society") and insert
1271§ (",of a registered society or of an unincorporated body of persons")
§ Clause 79, page 71, line 19, leave out ("or society") and insert (",society or body")
§ Clause 79, page 71, line 24, leave out ("or society") and insert (",society or body")
§ Clause 79, page 71, line 26, leave out from beginning to ("and") in line 28
§ Clause 79, page 71, line 31, leave out ("or society") and insert (",society or body")
§ Clause 79, page 71, line 36, leave out ("or society") and insert (",society or body")
§ Clause 79, page 71, line 38, leave out ("or society") and insert (",society or body")
§ Clause 79, page 71, line 42, leave out ("or society") and insert (",society or body")
§ Clause 79, page 72, line 2, leave out ("or society") and insert (",society or body")
§ After Clause 79, insert the following new clause—
§ Power of Board of Trade to adapt section 3 of the principal Act.
§ (".—(1) The Board of Trade may, on the application or with the consent of an insurance company to which the principal Act applies,—
- (a) by order direct that, for the purposes of section 3 of that Act (separation of funds relating to certain classes of business) in its application to the company, insurance business of a kind specified in the order, not being ordinary long-term insurance business, shall be treated as being such usiness; or
- (b) by order direct that, for the purposes of that section in its application to the company, ordinary long-term insurance business of a kind so specified shall be treated as not being such business.
§ (2) An order under this section may be revoked at any time by the Board of Trade.")
§ After Clause 79, insert the following new clause—
§ Circumstances in which persons carrying on insurance business of certain classes are to be taken as not carrying on also such business of other classes.
§ (".(1) For the purposes of this Part of this Act, a person shall not be taken to carry on liability insurance business by reason only of the incidental inclusion, in a contract of insurance whose principal object is to insure a person against risks of a kind such that the business of effecting and carrying out contracts of insurance against them constitutes property Insurance business, of provision whereby he assumes liability against the risk of the person insured incurring liabilities to third parties.
§ (2) For the purposes of this Part of this Act, a person shall not be taken to carry on marine, aviation and transport insurance business by reason only of the incidental inclusion, in a contract of insurance whose principal object is to insure a person against risks of a kind such that the business of effecting and carrying out contracts of insurance against them constitutes insurance business of some other class, of provision whereby he assumes a liability of a kind whose assumption by itself in a contract of insurance would make that contract such a one as is mentioned in subsection (4) of section (Classes of insurance business revelant for Purposes of Part II, and definitions thereof) of this Act.
1272§ (3) For the purposes of this Part of this Act, a person shall not be taken to carry on motor vehicle insurance business by reason only of the fact that goods, merchandise or property upon which a contract of insurance is effected by him (being goods, merchandise or property on board of a vessel or aircraft) consist of, or include, motor vehicles.
§ (4) For the purposes of this Part of this Act and of sections 3, 5 and 11 of the principal Act, a person shall not be taken to carry on ordinary long-term insurance business by reason only of the incidental inclusion in a contract of insurance whose principal object is to insure a person against risks of a kind such that the business of effecting and carrying out contracts of insurance against them constitutes marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, of provision whereby he assumes liability against the happening of personal accidents (whether fatal or not).
§ (5) For the purposes of this Part of this Act, a person shall not be taken to carry on pecuniary loss insurance business by reason only of the incidental inclusion, in a contract of insurance whose principal object is to insure a person against risks of a kind such that the business of effecting and carrying out contracts of insurance against them constitutes marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, of provision whereby he assumes liability against such risks as are mentioned in paragraphs (c) and (d) of subsection (7) of section (Classes of insurance business relevant for the purposes of Part II, and definitions thereof) of this Act.
§ (6) For the purposes of this Part of this Act, a person shall not be taken to carry on personal accident insurance business by reason only of the incidental inclusion, in a contract of insurance whose principal object is to insure a person against risks of a kind such that the business of effecting and carrying out contracts of insurance against them constitutes marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, of provision whereby he assumes liability against the happening of personal accidents (whether fatal or not).")
§ After Clause 79, insert the following new clause—
§ Exception for bankers
§ (".A person who carries on pecuniary loss insurance business solely in the course of carrying on banking business and for the purposes of that business shall be excepted from the operation of section 49 of this Act so far as regards such insurance business, and the principal Act shall not apply to a person by reason only that, in the course of carrying on banking business and for the purposes of that business, he carries on such insurance business")
§ After Clause 79, insert the following new clause—
§ Power of Industrial Assurance Commissioner to exempt Northern Irish collecting societies from provisions of Industrial Assurance Acts 1923 to 1958.
§ (".—(1) The Industrial Assurance Commissioner may, on the application of a collecting 1273 society registered in Northern Ireland, by order exempt it from any provision of the Industrial Assurance Acts 1923 to 1958 if he is satisfied that the existence of a provision of an enactment of the Parliament of Northern Ireland renders it unnecessary for the first-mentioned provision to apply to the society.
§ (2) The Industrial Assurance Commissioner may by order revoke an order made under the foregoing subsection with respect to a society, but the revocation shall not take effect until—
- (a) such period as may be specified in the order (which shall not be less than the four weeks next after the making thereof) has expired; and
- (b) notice that the order has been made has been published in the London and Edinburgh Gazettes;
§ Clause 80: leave out Clause 80.
§ Clause 81, page 72, line 20, leave out from ("in") to ("to") in line 21 and insert ("section 49(2)(b) and section (Penalty on friendly society for offence under Industrial Assurance Act 1923) of this Act and section 1(1A) of the Industrial Assurance Act 1923 references.")
§ line 22, leave out ("a reference") and insert ("references")
§ After Clause 86, insert the following new clause—
§ Temporary limitations of effect of alteration of scope of the principal Act
§ (".—Notwithstanding anything in this Act—
- (a) until such day as the Board of Trade may by order (made by statutory instrument) appoint, section 4 of the principal Act shall apply only to companies to which it would have applied had this Act not passed;
- (b) until the expiration of the period of one year beginning with the day on which this Act is passed, section 3 of the principal Act (separation of funds relating to certain classes of business) and section 11 thereof (amalgamations and transfers) shall have effect as if this Act had not passed; and
- (c) until the expiration of the period of two years beginning with the day on which this Act is passed, section 13 of the principal Act shall have effect as if this Act (with the exception of sections 51 and 64 thereof) had not passed, and the references, in section 55(1)(b) of this Act, to general business shall be construed accordingly;
§ After Clause 86, insert the following new clause—
§ Saving for discharge of liabilities lawfully assumed before passing of this Act
§ (".—A company, society or body shall not be taken to carry on insurance business in contravention of section 49 of this Act by reason only of its carrying on business for the 1274 purpose of discharging liabilities lawfully assumed by it before the passing of this Act.")
§ After Clause 87 insert the following new clause—
§ Revocation of provision of companies' memorandums of association restricting carrying on of insurance business
§ (".—Any provision of a company's memorandum of association that expressly precludes it from carrying on insurance business of any class shall cease to have effect.")
§ Clause 88, page 74, line 7, leave out ("Schedule") and insert ("Schedules (Amendments of Insurance Companies Act 1958 consequential on section (Classes of insurance business relevant for purposes of Part II, and definitions thereof) and subsection (1) of section (Alteration of scope of the principal Act) of this Act) and").
§ Clause 89, page 74, line 15, leave out ("74") and insert ("section (Penalty on industrial assurance company for non-compliance with enactments relating to industrial assurance)".)
§ Clause 89, page 74,leave out lines 35 to 43 and insert—
§ ("(b) sections (Penalty on industrial assurance company for non-compliance with enactments relating to industrial assurance) and (Penalty on friendly society for offence under Industrial Assurance Act 1923);
§ (c) section 76, so far as it relates to offences under subsection (4) of section 49 consisting in carrying on business in contravention of subsection (3) thereof and offences under section (Penalty on industrial assurance company for non-compliance with enactments relating to industrial assurance);
§ (d) section 77, so far as it applies section 38(2) to offences specified in the last foregoing paragraph;
§ (e) section 81, so far as relates to the Industrial Assurance Act 1923;
§ (f) section (Power of Industrial Assurance Commissioner to exempt Northern Irish collecting societies from provisions of the Industrial Assurance Acts 1923 to 1958);
§ (g) section 83 and Schedule 5, so far as they relate to the Industrial Assurance Act 1923;")
§ Clause 89, page 74,line 44, at end insert 'and
§ ("( ) section 86(2), so far as it defines 'registered society' and 'director', and section 86(3)".
§ After Clause 89 insert the following new clause—
§ Penalisation of furnishing false information under Part IIA
§ ("(1) A person who, in purported compliance with a requirement imposed under section 67 of this Act to provide an explanation or make a statement, provides or makes an explanation or statement which he knows to be false in a material particular or recklessly provides or makes an explanation or statement which is so false shall be guilty of an offence.
1275§ (2) A person guilty of an offence under this section shall be liable—
- (a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both;
- (b) on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding £200, or to both.")
§ After Clause 89, insert the following new clause—
§ Application for purposes of Part IIA of certain provisions of Parts I and II
§ (".—(1) Subsections (2) to (5) (both inclusive) of section 38 of this Act shall apply to, and in connection with, summary proceedings for offences under Part IIA of this Act and to informations relating to offences thereunder which are triable summarily as they apply to, and in connection with, such proceedings for offences under the Companies Act 1948 and Part I of this Act and to informations relating to offences thereunder that are triable summarily.
§ (2) Sections 75, 76 as read with 86(3) and 78 of this Act shall have effect in relation to offences under Part IIA of this Act as they have effect in relation to offences under Part II of this Act.")
§ After Clause 89, insert the following new clause—
§ Saving for solicitors and bankers
§ (".— (1) Nothing in Part IIA of this Act shall compel the production by a solicitor of a document containing a privileged communication made by or to him in that capacity or authorise the taking of possession of any such document which is in his possession.
§ (2) The Board of Trade shall not, under section 67 of this Act, require, or authorise an officer of theirs to require, the production by a person carrying on the business of banking of a document relating to the affairs of a customer of his unless either it appears to them that it is necessary so to do for the purpose of investigating the affairs of the first mentioned person or the customer is a person on whom a requirement has been imposed by virtue of that section.")
§ After Clause 89, insert the following new clause—
§ Interpretation of Part IIA
§ (" .—References in this Part of this Act to books or papers shall be construed as if they were contained in the Companies Act 1948.")
§ After Clause 89, insert the following new clause—
§ Extent of Part IIA
§ (".—Part IIA of this Act shall not extend to Northern Ireland.")
§ After Clause 89, insert the following new clause—
§ Exemption from prohibition imposed by section 429 of the Companies Act 1948, of banking partnerships with more than ten members.
§ (".—Section 429 of the Companies Act 1948 (which prohibits the formation of a company, association or partnership consisting of more than ten persons for the purpose of carrying on the business of banking unless 1276 it is registered as a company under the Companies Act 1948, or is formed in pursuance of some other Act, or of letters patent) shall not prohibit the formation of a partnership consisting of not more than twenty persons each of whom is for the time being authorised by the Board of Trade to be a member of a partnership formed for that purpose and consisting of not more than twenty persons.")
§ After Clause 89, insert the following new clause—
§ Exemptions from prohibition imposed by section 434 of the Companies Act 1948 of the formation of partnerships with more than twenty members.
§ (".—(1) Section 434 of the Companies Act 1948 (which prohibits the formation of a company, association or partnership consisting of more than twenty persons for the purpose of carrying on a business (other than the business of banking) for gain as therein mentioned unless it is registered as a company under the Companies Act, 1948 or is formed in pursuance of some other Act or of letters patent, or is such a company as is therein mentioned working mines within the stannaries) shall not prohibit the formation—
- (a) for the purpose of carrying on practice as solicitors, of a partnership consisting of persons each of whom is a solicitor;
- (b) for the purpose of carrying on practice as accountants, of a partnership consisting of persons each of whom falls within either paragraph (a) or paragraph (b) of section 161(1) of the Companies Act 1948;
- (c) for the purpose of carrying on business as members of a recognised stock exchange, of a partnership consisting of persons each of whom is a member of that exchange.
§ (2) The Board of Trade may by regulations made by statutory instrument provide that the said section 434 shall not apply to the formation (otherwise than as permitted by virtue of the foregoing subsection) for a purpose specified in the regulations, of a partnership of a description so specified.
§ (3) In this section 'recognised stock exchange' means any body of persons which is for the time being a recognised stock exchange for the purposes of the Prevention of Fraud (Investments) Act 1958, and 'solicitor', in relation to England and Wales, means solicitor of the Supreme Court, and, in relation to Scotland, means a person enrolled or deemed to have been enrolled as a solicitor in pursuance of the Solicitors (Scotland) Act 1933.")
§ After Clause 89, insert the following new clause—
§ Exemptions from prohibition imposed by section 4 of the Limited Partnerships Act 1907 of limited partnerships with more than twenty members.
§ (".—(1) So much of section 4(2) of the Limited Partnerships Act 1907 as provides that a limited partnership (other than a partnership carrying on the business of banking) shall not consist of more than twenty persons shall not apply—
- (a) to a partnership carrying on practice as solicitors and consisting of persons each of whom is a solicitor;
- (b) to a partnership carrying on practice as accountants and consisting of persons each of whom falls within either paragraph (a) or paragraph (b) of section 161(1) of the Companies Act 1948;
- (c) to a partnership carrying on business as members of a recognised stock exchange and consisting of persons each of whom is a member of that exchange.
§ (2) The Board of Trade may by regulations made by statutory instrument provide that so much of section 4(2) of the said Act of 1907 as provides that a limited partnership (other than a partnership carrying on the business of banking) shall not consist of more than twenty persons shall not apply to a partnership (other than one permitted by virtue of the foregoing subsection) carrying on business of a description specified in the regulations, being a partnership of a description so specified.
§ (3) In this section 'recognised stock exchange' and 'solicitor' have the same meanings respectively as in section (Exemptions from prohibition imposed by section 434 of the Companies Act 1948 of formation of partnerships with more than twenty members) of this Act.")
§ After Clause 89, insert the following new clause—
§ Extent of Part IIB
§ (".—This Part of this Act shall not extend to Northern Ireland.")
§ Leave out Clause 90.
§ LORD HUGHESMy Lords, with the permission of the House I will move en bloc that this House doth agree with the Commons in Amendments Nos. 214 to 260. All these Amendments are either consequential or not controversial.
§ Moved, That the House doth agree with the Commons in the said Amendments.—(Lord Hughes.)
§ On Question, Motion agreed to.