§ 60. Lieut.-Colonel Liptonasked the Chancellor of the Exchequer what steps he is taking to check the evasion of dividend limitation by the issue of free preference shares to ordinary shareholders.
§ Sir S. CrippsAn issue of bonus shares, whether preference or otherwise, does not necessarily imply a breach of the dividend limitation scheme, which is, at present a voluntary scheme which covers bonus issues as well as existing capital. A company which increases the total sum distributed in dividend by reason of a bonus issue is as much in breach of the scheme to limit dividends as one which does so without any bonus issue. In the light of existing circumstances and to avoid abuse and misunderstandings, I have asked the Capital 119W Issues Committee to suspend, for the time being, all applications for permission to make bonus issues.
§ 70. Mr. Chamberlainasked the Chancellor of the Exchequer how many applications for permission to issue bonus shares have been received by the Capital Issues Committee since 6th April, 1949; how many have been sanctioned; how many refused; and what was the aggregate nominal value in each case.
§ Sir S. CrippsFollowing are the figures:
Number Amount Applications: £000 Received … 331 126,000 Sanctioned … 317 124,000 Rejected … 14 2,000