The Bondholders Incorporation Bill

Press, Volume LXX, Issue 21320, 13 November 1934, Page 10

The Bondholders Incorporation Bill

L is unnecessary to rehearse the circumstances in which the Companies (Bondholders Incorporation) Bill has been prepared and introduced, and it would be ridiculous to question the need for legislative action; but the provisions of the bill, summarised in " The Press " at the end of the week, will have to be weighed very carefully. Time has of course been given for this very object; the bill was introduced and passed through its first reading on Friday, to open it to criticism before it is proceeded with next session. But that is good only as far as it goes; it does not make the Government's intentions, as disclosed, less formidable in certain regards, or offer anything better than the possibility of their being modified. The aim of the bill—to protect the interests of the bondholders of certain afforestation companies^—is not open to challenge. The steps which the proposed Bondholders Incorporation Commission is authorised to take, to this end, are far-reaching; but the question here is probably which of them and how many of them the commission will take in this situation or that, and the answer to this must wait. But it is obvious that the machinery clauses of the bill equip the commission with powers which make error and injustice irreparable and which tend towards them. The appointment of any member of the commission must not be questioned on any ground. The commission may act on any testimony, sworn or unsworn, and receive any evidence, in an y form, whether legally admis-

sible in a court of law or not. The commission may deal with and determine every matter coming before it, and make any consistent order, although express provision may not be contained in the statute. Finally, proceedings before the commission are not to be held bad for want of form, and no order or proceeding will be liable to challenge, appeal, or review in any court. Orders filed in the Magistrate's Court and the Supreme Court will issue as the final judgments or orders of the courts in their civil jurisdiction. It need only be said that it must always be dangerous to create extra-legal authorities like this, with powers of decision and action beyond question or appeal, and to exempt them from even those forms of procedure which normally protect litigants!