I move amendment No. 17, in the name of Deputy Declan Costello:—
In subsection (1), line 43, to delete " third " and substitute " eighth ".
I presume this is for the purpose of ensuring that newspapers will have a better opportunity of making informed comment available for the public.
A number of reasons have been put forward why I should resist that amendment. I understand the ordinary practice is to issue the prospectus on a Thursday, which would give until the following Tuesday for applications. That provides for the necessary lapse of time—two full days plus the weekend—the applications being made on the third day. If that were extended to the eighth day, I understand certain difficulties would arise. We have got comments from other people about it. If it would meet Deputy Costello's point, and if Deputy Sweetman can answer for him, I would extend it slightly, say, by one day.
What is the great objection to the eighth day?
I think the feeling is that all the propaganda of the prospectus would be gone cold.
Is that the only one?
As well as that people looking for allotments would have their money lying around idle for an unduly long time.
I can think of circumstances in which the Minister for Finance would not like the National Loan prospectus to be lying around for eight days. He might feel the enthusiasm he has generated would have died. But I think the third is a bit too short.
Could we compromise by saying on the fourth? Under existing practice, that would give almost a full week, if you start on Thursday.
Do Saturday and Sunday count?
No. Wednesday morning, it would be.
Although they may be out, they are quite important from the point of view of inquiries and investigations being made. They are made just the same on Saturday and Sunday. I would be rather inclined to make it something more and to keep them in.
Would it not meet the point by saying the fourth day? In any event, I think promoters issuing prospectuses like a week-end to intervene in order to give time for family reunions to consult about it.
The golf club on Sunday.
The bank manager on Monday and Tuesday.
As Deputy Sweetman rightly observed, if you let it go too long, the thing would go cold. We could insert the word " fourth " instead of " third ". If that will suit the Committee, I shall undertake to move an amendment later, because there will be consequential changes.
That does not affect the provisions of subsection (6) for Saturdays and Sundays ? Is that in ?
Yes.
Suppose it were on Thursday. Friday would be the first day and Wednesday morning the fourth. Your National Loans would want to start on Tuesdays.
Are they really affected ? They do not relate to companies.
They are open on Tuesdays and close on Fridays. O.K. ; they really are not affected.
I move amendment No. 18:
To delete subsection (5) and substitute:
" () An application for shares in or debentures of a company which is made in pursuance of a prospectus issued generally shall be irrevocable until after the expiration of 7 days after the day on which the prospectus is first so issued or the giving before the expiration of the said 7 days, by some person responsible under Section 49 for the prospectus, of a public notice having the effect under that section of excluding or limiting the responsibility of the person giving it."
This arises out of the Jenkins Report. The members of the Committee have a circulated brief before them. They will see in it that the Industrial Credit Company recommended that the change suggested by the Jenkins Committee should be adopted here. Subsection (5) at present provides that applications shall not be revocable until after the expiration of the third day after the time of the opening of the subscription lists. " The time of the opening of the subscription lists" is defined in subsection (1) as the beginning of the third day after that on which the prospectus is issued. Sub section (5) did not, therefore, specifically relate to the period before the opening of the subscription lists and it appears that some doubt arose in Britain as to the irrevocability of applications up to that date. The intention of the new draft of subsection (5) is to clarify the position by declaring that applications will be irrevocable from the time they are made until after the expiration of seven days after the issue of the prospectus. Having been recommended by the Jenkins Report and the Industrial Credit Company, I take it the Committee will be agreeable to accept this amendment.
