§ Mr. Arthur Lewisasked the Secretary of State for Trade if he will proceed against the former director of Kendal and Dent Ltd. under the Companies Acts; why it took his inspectors three years to complete their investigations before the compulsory winding-up of the firm; and if he will make a statement.
§ Mr. EyreThe question whether proceedings should be brought under the Companies Acts or other legislation against those concerned in the management of Kendal and Dent Ltd. is being considered.
Liquidation has potentially serious consequences for a company and its creditors who in this case included about 4,000 depositors. Thorough and extensive investigation of the company's complex and changing affairs was necessary before a winding-up petition could be justified in the public interest.
§ Mr. Arthur Lewisasked the Secretary of State for Trade whether, in the light of the compulsory winding-up of Kendal and Dent Ltd., he will seek powers to require directors to pay back director's fees to creditors in the event of liquidation.
§ Mr. EyreI have under consideration the extent to which directors can or ought to be made civilly liable for the debts or liabilities of insolvent companies, and the hon. Member's suggestion will be borne in mind.