Will the Minister tell the reasons for this section, and more specifically, what type of changes will be made to alter the memorandum and articles of association of the company? This Bill primarily relates to the borrowing powers of the company. Generally, in relation to a company this is a matter of a resolution being passed at a board meeting rather than a change necessary to be effected in the memorandum and articles of association. Does this section arise because of the dealings on the foreign money market now being entered into by the Industrial Credit Corporation? I would like some clarification of the reason for this section.
Private Members' Business. - Industrial Credit (Amendment) Bill, 1979: Committee and Report Stages.
Sections 1 and 2 agreed to.
SECTION 3.
Question proposed: "That section 3 stand part of the Bill."
This is merely to alter the limit in line with the legislation.
Do I take it from that that the borrowing limits are stated in the memorandum and articles?
Yes.
That is unusual in relation to companies. Is there any other need to amend the memorandum and articles from the point of view of borrowing on foreign money markets?
No.
Would there be a need to examine the contents of the memorandum and articles of association of the company, because of the fact that the Minister or the Government will not guarantee all the foreign borrowings? In that situation the Industrial Credit Corporation is in effect taking a risk on the money markets abroad. This new type of business being entered into by the corporation may be ultra vires the memorandum and articles of association. It is a new aspect of their activities, and can the Minister confirm that such borrowings and such exchange risks which may be assumed by the corporation are not in fact ultra vires the memorandum and articles of association?
The answer is no.
They can deal in foreign exchange currencies or take a loss on the foreign currency market?
Yes.
Question put and agreed to.
Section 4 agreed to.
Title agreed to.
Bill reported without amendment.
Agreed to take remaining Stage today.