It will be seen here that subsection (1) does not impose an obligation to keep a register of debentures. It merely states that a company which does keep such a register must keep it at the places mentioned. A company is definitely required by Section 116 to keep a register of members, the reason being that it is a matter of some importance to all persons dealing with the company that facilities for ascertaining the names and shareholdings of members should be available. The conditions attaching to the issue of debentures, including the question of whether or not a register should be kept, are domestic matters between the company and the persons from whom it is borrowing the money.
SECTION 91.
Question proposed : " That Section 91 stand part of the Bill ".
Supposing a company has debentures and does not keep a register how is it going to know who the owners of those debentures are? Surely the provision should be that a company would not be bound to keep a register of debenture holders unless it had issued debentures and that if it had issued single debentures, as apart from a Trust deed covering the debentures, the Trustees are responsible to know who the holders are and in those circumstances there is an obligation on the company to keep those debentures. There could not be an obligation to keep a register of debentures because in the majority of cases there are no debentures. But, wherever there are debentures, I think there should be a register.
Would Deputy Byrne say out loud what he has just said? I am inclined to agree with him.
I am not interested in the case where there is a single trust deed to secure a debenture in favour of a bank, for example. The bank, for example, can usually look after itself. I am thinking of a case where the Gas Company has a big debenture issue. How on earth could anybody discover who are the holders of those debentures if there were any argument about rights, and so on, unless there was a register of those debentures which the ordinary public had the right to see? I should be glad if the Minister would examine it.
Certainly, I shall look into that.
Question put and agreed to.