COMMONS AMENDMENT (Hansard, 11 September 1972)

§ LORD DRUMALBYN

My Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 16. This Amendment proposes to 29 leave out subsection (3). The reason for this is that the first part of the subsection is already covered by subsection (5) and so it is unnecessary; and the second part is liable to give a wrong impression of the intention of the clause. The intention is that the receiver's personal liability should be confined to his own actions after he has taken over charge of the affairs of the company. For what has been done before and is not changed by him he will not have personal liability. Claims under existing contracts of service, like claims under other types of contract, would become claims against the company, not against him. As the subsection is drafted the receiver could be deemed to have incurred personal liability in respect of those contracts of service simply by allowing him to continue in force after appointment. This is not the intention and the subsection therefore is not necessary.