§ Mr. Wigley
asked the Secretary of state for Trade if he is satisfied that present legislation is adequate to prevent multiple directorships being used to transfer assets between companies at direct valuation, contrary to the interests of the outside shareholders of the companies involved.
§ Mr. Eyre
A director has a duty to act in the interest of the company and if he does not do so he may face legal action. The present Companies Bill includes, in clause 47, a provision which would help minority shareholders in the type of case mentioned; and new clause 22, which was debated and added to the Bill last week, introduces greater shareholder control over substantial property transactions involving directors.