206 After Clause 45, insert the following new clause:
Duty of auditors of company in breach of s. (Substantial contract, etc., with directors and others to be disclosed in accounts) or (Particulars of amounts out-standing, to be included in accounts).
§ s. If in the case of any group or other accounts of a company the requirements of section (Substantial contracts, etc., with directors and others to be disclosed in accounts) or (Particulars of amounts outstanding to be included in accounts) above are not complied with, it shall be the duty of the auditors of the company by whom the accounts are examined to include in their report on the balance sheet of the company, so far as they are reasonably able to do so, a statement giving the required particulars."
207 After Clause 45, insert the following new clause:
Disclosure by directors of interests in contracts, etc.
§ .—(1) Any reference in section 199 of the 1948 Act (disclosure by a director of a company of his interest in a contract with the company) to a contract shall be construed as including a reference to any transaction or arrangement (whether or not constituting a contract) made or entered into on or after the appointed day.
§ (2) For the purposes of the said section 199, a transaction or arrangement of a kind described in section (Prohibition of loans, etc., to directors and connected persons) above made by a company for a director of the company or a person connected with such a director shall, if it would not otherwise be so treated (and whether or not prohibited by that section), be treated as a transaction or arrangement in which that director is interested."1081
§ Lord LYELL
My Lords, I beg to move that this House doth agree with the Commons in their Amendments Nos. 206 and 207. My Lords, I beg to move.
Moved, That the House doth agree with the Commons in the said amendments.—(Lord Lyell.)
§ On Question, Motion agreed to.