§ Sir Brandon Rhys Williamsasked the Secretary of State for Trade and Industry if he will publish tables showing the information he currently has as to the development of companies established following management buy-outs with particular reference to capital employed, margins of profit earned and numbers of employees.
§ Mr. FletcherNo. The Department does not collect statistics on management buy-outs and therefore has no systematic information available on the subsequent development of such companies.
§ Sir Brandon Rhys Williamsasked the Secretary of State for Trade and Industry what is his policy in regard to the disposal of shares in management buy-outs at the time of retirement or the decease of an employee shareholder; and if he will take steps to facilitate the purchase by the company or by a trust established by the company of the shares owned by employee shareholders.
§ Mr. FletcherThe disposal of shares in management buy-outs on the death or retirement of an employee shareholder is a matter for those concerned.
The Companies Act 1985 already provides for qualifying companies to purchase their own shares and if applicable this arrangement may constitute a possible route for disposal. Companies however may not retain their own shares, an important safeguard for the legitimate interests of shareholders and creditors. This principle would circumscribe further steps to facilitate arrangements of the sort suggested by my hon. Friend.