MANAGING DIRECTORS.

Auckland Star, Volume LXVII, Issue 185, 6 August 1936, Page 10

MANAGING DIRECTORS.

MAY BE SENT TO PRISON,

(By Telegraph.—Parliamentary Re-porter.) WELLINGTON, Wednesday.

The opinion that the managing director of a company or corporation could lie sentenced to a term of imprisonment as well as a small trader for profiteering was expressed -by the Leader of the Legislative Council, the Hon. M. Fagan, during the committee stage of the Prevention of Profiteering Bill.

The clause dealing with penalties specifies that in the case of individuals there is to be a fine of not more than £200 or a maximum of three months' imprisonment, and in the case of a company or other corporaton a fine not exceedng £1000.

The Hon. R. Masters (Taranaki) moved to delete the clause providing for imprisonment in the case of an individual. He said that he could not see why big companies should be immune from the punishment prescribed for an individual.

Mr. Fagan replied that it would be competent for a magistrate to send the directors of a company to gaol. The clause dealing with the constitution of the offence of profiteering had to be,read in conjunction with the clause dealing with penalties. Mr. Masters: I entirely disagree. Mr. Fagan said that the opinion of the Crown Law Draftsman was that a managing director could get the same term of imprisonment for an offence as a small trader would receive. Mr. Masters' amendment was defeated by 18 votes to 10. The Hon. T. Bloodworth (Auckland) moved an amendment providing that a managing director should be liable to 12 months' imprisonment, but the amendment was defeated on the voices.