I move:—
To add at the end of the section a new sub-section as follows:—
"(2) In this Act the expression ‘body corporate' means and includes only a body corporate having a capital for the time being of not less than £50,000 of which not less than £20,000 shall have been paid up in cash."
In this, too, I am acting on very eminent legal advice. As you, sir, stated this day fortnight, it is feared that this Bill might be abused by persons who would avail themselves of it to promote what is popularly known as a bogus company, for which purpose under the Act of 1908 two or three people would be sufficient, and they could advertise to the public that they were prepared to undertake the duties of executors and administrators. No doubt, it will be said that it is for the intending testator to look out for himself and that he is unlikely to select a person, or persons, or a corporation which would not faithfully carry out the duties and trusts imposed upon them. But, on the other hand, here as elsewhere, a great many innocent people—and there are more innocent people in this country than elsewhere— are very largely influenced by advertisements, and if they saw an advertisement suggesting that the duties of an executor could be discharged by a company, that that would mean perpetual succession and that a person's property would be looked after for ever, as compared with an individual or individuals, who would die some time, a man might be attracted to entrust the administration of his affairs to such a company. Again I am bound to tell the House that the Incorporated Law Society, through its special committee, gave a great deal of attention to this matter— and the President had the privilege of an interview with you, sir—and they are very strongly of opinion that there should be a certain amount of capital in the case of such a company. I understand that the English Act makes such a provision, and there is a further analogy to be drawn in support of the amendment, inasmuch as if any insurance company wants to start business in the Free State it has to lodge a very large sum of money—£20,000, or there-abouts—as security. I do not see any reason why a body corporate, seeking to exercise the powers conferred under this Bill, should not be asked to give equal security in the shape of paid-up capital. It would present no difficulty in the case of those institutions which Senator Douglas has in mind; their capital is assured and known, and if they undertake the duties under this Bill the persons who take advantage of the Bill will be fully secured. But it is unquestionably possible that a bogus company could be started, seeking to exercise the powers conferred by this Bill, and I think that it is not at all unreasonable that a provision should be inserted fixing the amount of the paid-up capital of such a corporation.
