§ Mr. John TownendTo ask the Chancellor of the Duchy of Lancaster (1) if he will take steps to require any industrial and provident society which competes commercially with bona fide customers which announces a scheme to secure a stock market flotation, to ensure that the promotion of such a scheme complies with the provisions of the Companies, Financial Services and Prevention of Fraud (Investment) Acts;
(2) if he will take steps to prevent any industrial and provident society from issuing misleading advertisements relating to the stock market value of its shares when (a) its members have not been consulted on a change of status to enable a stock market flotation to proceed and (b) its campaign creates a major distortion of competition between it and other properly constituted commercial enterprises;
(3) if he will refer to the Director General of the Office of Fair Trading the question whether the issue of discounted bonus shares over a three-year period linked to tied customer purchases distorts open market competition and therefore should be ruled an anti-competitive practice, with particular reference to the issue of such shares by an industrial and provident society;
(4) if he will consider taking action under the Prevention of Fraud (Investment) Act 1988 against Unichem Ltd. in respect of its proposal to offer additional shares to members at £1 each which it states will be worth not less than £12 when Unichem is converted from an industrial and provident society to a plc.
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§ Mr. MaudeMy Department has received and is considering allegations that the issue of certain advertisements by Unichem Ltd. may have infringed the Prevention of Fraud (Investments) Act 1958. It is for the Director General of Fair Trading to consider whether the issue of bonus shares on the terms proposed would constitute an anti-competitive practice under the Competition Act 1980.