§ Mr. Marlowasked the Secretary of State for Trade what provisions of the Companies Bill [Lords] will seek further to prevent a director or directors from bankrupting a company in difficulties and then buying back at a low price the fixed assets of that company through another company in which the director or directors have an interest.
§ Mr. EyreThe Companies Bill [Lords] does not contain any provisions which are directly concerned with this question. The sale and disposition of the assets in a liquidation are primarily matters for the liquidator, and the committee of inspection to deal with in the interests of the creditors and shareholders of the company.
Whether additional grounds are needed to enable disqualification orders to be made against directors, or whether other obligations should be imposed upon them, are matters which will be considered when the committee, presently reviewing insolvency law, submits its report later this year.