HC Deb 04 April 1979 vol 965 c745W
Mr. Lee

asked the Secretary of State for Trade if he is satisfied with the effectiveness of section 54 of the Companies Act whereby loans by a company for the purchase of its own shares though generally forbidden are permitted if established to be in the ordinary course of business; and if in particular he considers the penalties for breaches of this section are adequate.

Mr. Clinton Davis

I do not consider the penalty for breach of section 54 of the Companies Act 1948 to be adequate, and schedule 2 to the Companies Bill includes a substantial increase in the fine payable on conviction and provides for imprisonment for up to two years.