This is something new. I think it was commented upon on the Second Stage. It requires the expressed consent of an expert who has included a report in a prospectus. Having done so, he becomes liable for that part of the prospectus. Nevertheless, it does not relieve the company of any liability in respect of statements made by an expert.
SECTION 46.
Question proposed : " That Section 46 stand part of the Bill. "
This is the section which merely says that you must have the expert's consent.
Where is the section that says the expert is liable?
Section 49.
In the general section, the directors, and so on—
The penalty in this section applies to persons responsible for issuing the prospectus?
Yes.
Subsection (3) provides : " In this section ‘ expert ' includes engineer, valuer, accountant and any other person whose profession gives authority to a statement made by him. "
That was taken from the 1948 Act. Of course, we could include a few other professions.
Is there anybody who certifies these fellows? Some of us remember the famous case of the Wicklow Gold and a gentleman whose qualifications might be worth looking up these days. He had every qualification in the world.
That would surely be fraudulent prospectus, apart from anything else?
That is a subject we have to discuss tomorrow at the Health Committee, though we may not realise it.
I am told there is a definition that an expert is anybody who is 50 miles away from home.
Would that include an architect ?
Yes, architect, geologist, etc.
Any other professional person whose profession gives authority to a statement.
A lawyer is obviously excluded.
Question put and agreed to.