COMPANY LAW.

Auckland Star, Volume LIX, Issue 231, 29 September 1928, Page 4

COMPANY LAW.

NEW ACT IN BRITAIN

SHARE-TOUTING DEALT WITH

The Companies Bill, which passed the British Parliament recently, is an immense document, consisting of 120 clauses with many sub-sections.

Under the measure the provision regardinto "share-touting" will at onee come into operation, but its other provisions will remain for a' time in abeyance. The measure largely carries out the recommendations of the Company Law Amendment Committee, which voiced the opinion of those professionally engaged in company work. Though it will be useful remarks the "Times"), it is very regrettable that the Government resisted the efforts of those who desired to put auditors under a statutory obligation to report in definite terms on certain, points essential to the enlightenment of the shareholders. However, the accounts of public companies will in future be a little more informative, since it will fee necessary to distinguish between floating and fixed assets and to show how the values of fixed assets are computed. Details must also be given of intangible assets, such as goodwill and patents. Sharfe-hawking is made punishable by both fine and imprisonment; the abridgment of prospectuses with applica: tion forms attached is forbidden, and the offer-for-safe must in future contain the same material information as the prospectus. It is particularly satisfactory to see that,' in future, directors who are offered compensation for loss of office on the sale of a company's shares will be bound to make a disclosure.

The clause dealing with share pushing provide! that where & .perron is convicted of an offence the Court before which he is convicted may order that any contract that has been made is void and that the money shall be refunded or the shares retraneferred. It was felt, however, that this proviso could not apply to Scotland, Where the criminal and civil sides are kept entirely distinct. While, therefore, share pushing will be illegal in Scotland, the proviso concerning the annulment of the transaction will not operate.