§ Mr. Rookerasked the Secretary of State for Industry under which legislation the proposed two Government directors will be appointed to the board of Chrysler United Kingdom Limited; and if he will make a statement concerning the responsibilities of company directors under this legislation outlining how these responsibilities will differ from those of the Government director appointed to the board of the former Rootes Motor Co., Ltd.
§ Mr. KaufmanThe right to nominate two directors to the board of Chrysler United Kingdom Limited does not arise from legislation but is one of the conditions of the agreement reached between the Government, Chrysler United Kingdom Limited and the Chrysler Corporation. The Government did not nominate a director to the former Rootes Motor Company Limited. The right to do so was transferred to Government when the assets, right and liabilities of the IRC were vested in Government following the dissolution of the Corporation. This right was not exercised when the IRC nominee, Mr. Bernard Boxall, resigned on 30th April 1971, and the right subsequently 233W lapsed when the former IRC investment in Chrysler United Kingdom Ltd. was realised.
The position of Government-nominated directors is the same as that of any other director.