§ MR. FLYNN
I beg to ask Mr. Attorney-General whether he is aware that, owing to the fact that, under the Companies Act of 1862 (s. 69), it is provided that a meeting of shareholders shall be held at least once a year, but no penalty is mentioned for non-compliance with this provision, in the case of several companies meetings are not held once a year, and the shareholders are at the mercy of the directors; and whether he will recommend such an amendment of the Act as will provide a penalty for non-compliance with the section referred to?
§ THE ATTORNEY-GENERAL (Sir R. WEBSTER,) Isle of Wight
It is true that there is no penalty for non-compliance with the provisions of section 49, but penalties can be enforced because, by section 26, annual returns have to be made subject to a penalty, and it has been decided that the fact that no meetings have been held affords no answer to proceedings for penalties. Suggestions for amending the law in this respect have already been considered by the committees who have been investigating the provisions of the Companies Acts, and I have no doubt the honourable Member will have an opportunity during the present Session of proposing some amendments of the law.