§ Mr. Wheelerasked the Minister for Trade if he will list his powers under the Companies Acts to intervene 642W where a director of a company is shown to be someone convicted of a commercial offence, or in respect of unlawful acts in the course of his business.
§ Dr. VaughanThe Secretary of State has no powers of intervention under the Companies Acts but section 188 of the Companies Act 1948, as amended by section 93 of the Companies Act 1981, gives the courts power to disqualify from managing a company those persons who have been convicted of an indictable offence in connection with the promotion, formation, management or liquidation of a company or with the receivership or management of the property of a company; and those persons who have persistently defaulted in delivering documents to the Registrar of Companies.
The Secretary of State has power under the Insolvency Act 1976 to apply to the court for a disqualification order where a person is, or has been, a director of two insolvent companies which have gone into liquidation within five years, and if it appears to the court, that that person's conduct as a director of those companies make him unfit to be concerned in the management of one of these companies.
Undischarged bankrupts are automatically prohibited from managing companies without the leave of the court.
§ Mr. Wheelerasked the Minister for Trade if he will list the steps which may be taken by him under the Companies Acts where it is shown that particular individuals are using limited companies to engage in activities contrary to the law.
§ Dr. VaughanMy right hon. and noble Friend can appoint inspectors under section 164 or 165 of the Companies Act 1948 to investigate the affairs of a company and to report thereon. Under section 109 of the Companies Act 1967 my right hon. and noble Friend can make confidential inquiries by requiring a company to produce its books and papers for inspection by an officer of the Department and to provide an explanation of any of them.