HC Deb 02 December 1971 vol 827 cc161-4W
Mr. Cant

asked the Secretary of State for Trade and Industry (1) what further measures he proposes now to take to protect Dollar Land shareholders from managerial negligence, in the circumstances that, in spite of his previous pressure upon the company to produce its accounts its 1969 accounts are only just being published and do not represent a true and fair view of the company's position even then;

(2) what action he has taken to protect Dollar Land shareholders from managerial negligence otherwise than by exerting pressure for the publication of the company's accounts.

Mr. Ridley

I have secured the publication of the 1969 accounts, and the company is not yet in default for its 1970 accounts. I shall continue to take any steps that seem to me appropriate for securing compliance with the requirements of the Companies Acts.

Mr. Cant

asked the Secretary of State for Trade and Industry whether he now accepts the finding of counsel submitted to his Department in the Dollar Land case, that there were strong grounds under which he could appoint inspectors under Section 165(b) of the Companies Act, 1948.

Mr. Ridley

I assume the hon. Member to be referring to an opinion of counsel submitted with other papers in February, 1970, in support of an application for the appointment of inspectors under Section 165. That application, opinion of counsel and supporting papers were fully considered but I was not satisfied that there were sufficient grounds for making an appointment: I have no reason to believe that judgment to have been wrong.

Mr. Cant

asked the Secretary of State of State for Trade and Industry wheher he accepts the finding of the Dollar Land auditors that its 1969 accounts do not represent a true and fair view, and will therefore appoint inspectors to investigate the affairs of this company under Section 165(b)(iii) of the Companies Act, 1948, on the ground that there are circumstances suggesting that its members do not have all the information that they may reasonably expect.

Mr. Ridley

The hon. Member is mistaken; the auditors of Dollar Land Holdings Ltd. state that they are unable to express an opinion whether the accounts show a true and fair view. There are no grounds for appointing inspectors under section 165(b)(iii) in the present circumstances.

Mr. Cant

asked the Secretary of State for Trade and Industry what action he will take in respect of the circumstances in the accounts of Dollar Land Holdings Limited showing that the company is in contravention of Section 149 of the Companies Act, 1948.

Mr. Ridley

The accounts were qualified because the accounts of its subsidiary abroad, which is not subject to United Kingdom jurisdiction, were qualified. I have no powers over companies not incorporated or not carrying on business in the United Kingdom.

Mr. Cant

asked the Secretary of State for Trade and Industry (1) what action he will take to investigate the contradictory assertions made by the person who purported to be the chairman of Dollar Land Holdings Limited in 1969, as to the ownership and acquisition of various shareholdings in the company in which he was involved;

(2) what action he will take to investigate the undertakings and representations of the person who purported to be the chairman of Dollar Land Holdings Limited during 1969, made for the purpose of attaining such chairmanship, that he would produce the 1968 and 1969 accounts of the company not later than four months after the year end;

(3) what action he will take to investigate whether the person who purported to be the chairman of Dollar Land Holdings Limited in 1969 did so genuinely.

Mr. Ridley

I would refer the hon. Member to the Answer I gave the hon. Member for West Ham, North (Mr. Arthur Lewis) on 22nd November.—[Vol. 826, c.264.]

Mr. Cant

asked the Secretary of State for Trade and Industry what action he will take to determine, for the information of Dollar Land shareholders, what has happened to the 16 shillings per share of assets which they were informed they had in late 1968, but which they now find have totally disappeared.

Mr. Ridley

The hon. Gentleman should know that the valuation of shares is no responsibility of mine unless there is reason to believe that fraud has been involved.

Mr. Cant

asked the Secretary of State for Trade and Industry what action he is taking to investigate why Dollar Land Holdings Limited, in spite of the undertakings of its officers and former purported officers, constantly contravenes Section 148 of the Companies Act, and thereby, and in other ways, denies its members all the information they may reasonably expect.

Mr. Ridley

I have secured that the company is not now in breach of Section 148 of the Companies Act, 1948. I consider that at the present time the company has given its members all the information that they may reasonably expect.