HC Deb 15 May 1912 vol 38 cc1244-5W
Mr. GINNELL

asked whether the Board recognise as a true asset, available for the protection of policy-holders of the Law Integrity Insurance Company, Limited, the sum of £29,685 2s. 8½d., described in their balance sheet as establishment account; if so, how is that money invested; if that sum is not available how much is; if he will state the total revenue, commission, and working expenses, respectively, of this company since its formation; whether the proportion of expenses to revenue is that usual in well managed companies; what proportion of the last dividend has been paid by the directors to themselves personally; whether the Board require a dividend paid in such circumstances to be charged as working expenses; whether the Board allow a company in this condition to pay a dividend; whether F. C. Norman, managing director, is the person of that name previously connected with the Irish Provident Company now in compulsory liquidation; and whether, in the interest of the policy holders and the public, the Board will, at an early date, investigate the affairs of this company?

Mr. BUXTON

The sum of £29,685 2s. 8½d., described in the balance sheet of the Law Integrity Insurance Company, Limited, as "Establishment Account," represents the proportion of expenditure which is attributed by the company to the establishment and organisation of the business as distinguished from the expenses of carrying on the business, but I am not prepared to express an opinion as to whether it is a true asset. The returns filed by the company do not disclose the total revenue, commission, and working expenses since its formation, and I am therefore unable to give that information. For the year ending 30th June, 1911, the returns show that the total revenue from all classes of business amounted to £28,065 1s. 10½d., and the total commission and expenses to £22,879 18s., of which £14,685 2s. 8½d. was attributed by the company to establishment and organisation of the business and treated as an asset in the balance sheet. The returns filed by the company do not show what proportion of the last dividend was received by the directors, and the Board of Trade have no control over the payment of dividends by a company or the manner in which they are charged. Mr. F. C. Norman, the managing director, was previously connected with the Irish Provident Assurance Company, Limited. The only power of investigation of the affairs of the company which the Board of Trade possess is that given to them by Section 109 of the Companies (Consolidation) Act, 1908, in accordance with which the Board of Trade can appoint an inspector on the application of members holding not less than one-tenth of the shares issued. No such application has been made to the Board of Trade in this case, and consequently their jurisdiction to appoint an inspector has not arisen.