BRITISH COMPANIES BILL

Otago Daily Times, Issue 26349, 2 January 1947, Page 6

BRITISH COMPANIES BILL

NOMINEE SHAREHOLDING LIMIT The chief recommendations of the Cohen Committee's report are adopted in the British Companies Bill, the text of which was issued recently. The Bill provides for the retiring age for the director normally 70, and makes a director of a gublic company who fails to disclose that e has reached that age liable to a penalty. It requires nominee shareholders who hold more than one-hundredth of a company’s total issued share capital to disclose their ownership to the company. The Bill also puts sharp limits on dealings by directors in the shares of their own companies. Companies are required to keep a register of--directors’ shareholdings and dealings and to lay it open for ’ inspection.. Tax-free payments to directors are forbidden. Applicants for new capital issues are protected by the provision that where an application for permission to deal on the Stock Exchange is refused the moneys subscribed have to be repaid to them, and if the money is not repaid the directors become liable.