§ Mr. Wrigglesworthasked the Secretary of State for Trade whether he will make a further statement about the legislative proposals which he is preparing in connection with inside dealing, loans by companies to their directors and directors' private interests.
§ Mr. DellThe Government have today published a White Paper, "The Conduct of Company Directors", which sets out the Government's proposals for certain amendments to the law as it affects the conduct of company directors. The White Paper proposes that there should be a statement in statute law of the existing common law duties and responsibilities of directors, and it is intended that directors will be required to take into account the interests of employees as well as shareholders. It is also proposed that provisions be introduced to strengthen the existing rules relating to loans made by companies to their directors and, with some exceptions, to extend these to the immediate families of directors and to companies in which directors or their families have a financial interest. Certain breaches of these rules will be made a criminal offence, and where loans are permitted the law will require greater disclosure of them. Stricter rules will be introduced relating to significant transactions by companies in which their directors have a personal financial interest, including a requirement for greater disclosure of the details of such transactions.
156WThe White Paper also sets out the Government's proposals to make insider dealing a criminal offence with separate provisions covering transactions on the Stock Exchange and transactions where the parties are in a direct, contractual relationship. It also proposes some strengthening of the civil remedies available.
Legislation to implement the proposals in the White Paper is being prepared, but because of the pressure on the parliamentary timetable I cannot yet say whether it will be possible to introduce the necessary provisions during the present Session.