§ Mr. Cantasked the Secretary of State for Trade and Industry what is his policy, with respect to the protection of its potential and actual shareholders, when the chairman of a publicly quoted company is taken into custody and/or placed on bail, as the result of allegations of fraud.
§ Mr. Nicholas RidleyWhere the alleged fraud arises under foreign jurisdiction the policy is to consider whether it calls for any action in this country under the Companies Acts. In respect of alleged fraud in this country, the Department's powers under the Companies Acts exist, and are used, for the protection of the public, including shareholders.
§ Mr. Cantasked the Secretary of State for Trade and Industry how many reports were submitted in relation to private and public companies, respectively, by the official receiver to the court under Section 236(2) of the Companies Act, 1948, during 1969 and 1970 which fulfilled the conditions precedent to the use by the court if it thought fit of Section 270 public examination procedure.
§ Mr. RidleyNone.
§ Mr. Cantasked the Secretary of State for Trade and Industry what is the proportion of the cases submitted to his Department by the police during 1970, in relation to which his Department then invoked a specific statutory investigatory power.
§ Mr. RidleyIt would be impossible to give a full answer without an unjustifiable expenditure of time and money, but during 1970, the Department acceded to all requests by the Police for the appointment of inspectors under Section 109 of the Companies Act, 1967.
§ Mr. Cantasked the Secretary of State for Trade and Industry why his Department has not sought a Section 270 public examination from the court since 1958.
165W
§ Mr. RidleyBecause this procedure is not the most effective means of obtaining evidence for a prosecution.