§ Mr. BAKERasked the President of the Board of Trade whether he will consider the introduction of legislation to make companies publish in their Articles of Association exact particulars of various assets, the prices paid for them, and the companies or individuals from which they were purchased?
Mr. WEBBUnder the provisions of Sections 80 and 81 of the Companies (Consolidation) Act, 1908, every prospectus issued by or on behalf of a company must be filed with the Registrar of Companies, and such a prospectus must containinter alia the following information: The names and addresses of the vendors of any property purchased or proposed to be purchased, and the amount payable in cash, shares or debentures, specifying the amount (if any) payable for goodwill; and also the dates of, and parties to, every material contract; and a reasonable time and place at which any material contract or a copy thereof may be inspected. Under the provisions of Section 82 of that Act, a public company which does not issue a prospectus shall not allot any of its shares or debentures unless there has been filed with the 273W Registrar of Companies a statement in lieu of prospectus. Such a statement must include inter alia the names and addresses of the vendors of property purchased or proposed to be purchased; the amount payable in cash, shares or debentures; the dates of, and parties to, every material contract; and the time and place at which the contracts or copies thereof may be inspected. The suggestion that companies should include this information in their Articles of Association will be considered when the next revision of the Companies Act is undertaken.