I move amendment No. 5 :
In subsection (1) page 164, line 47, after " creditors " to insert " and shareholders ".
Briefly, what I have in mind is, that in giving particulars in the assets the shareholders would be in the same position as the creditors. That is why I suggest that " and shareholders " should go in after " creditors ". It would be well that they would be kept fully informed as regards the liquidation.
The idea behind the amendment is a good one because it might be of interest to persons examining these statements to know who the shareholders, as well as the creditors, are. But I suggest there is no real need for the amendment. If you glance at Section 319, subsection (1) paragraph (c) you will see it provides that the statement must be sent, first, to the registrar of companies, secondly, to the court, if the receiver is appointed by the court, thirdly, to any trustees for the debenture holders and, fourthly, to the debenture holders themselves. The object in including the registrar of companies is to ensure that the statement will be available for public inspection. Section 370 provides that all documents filed with the registrar may be examined by any person on the payment of a fee. Such a person going to the Companies Registration Office would not be greatly assisted by having the names of shareholders included in the statement, since he may, if he wishes, look up the return filed with the registrar under Section 125. If he learns there has been any substantial change since the last return, he may go to the registered office of the company and inspect the register, on payment of a fee not exceeding 1/-
This information will be available anyhow.
I might mention, in passing, that the requirements we are now providing here are far in advance of the legislation in Britain or the Six Counties. Again, while I agree with the principle behind the amendment submitted by the Senator, I suggest that its purpose is already adequately achieved in the Bill as it stands.
Is there any need for Section 320 where you have to give the information to the creditors, if they can get in anyway?
The list of creditors would not be available. The company has to make a return, every year, of its shareholders and this would be available in the Companies Office in the normal way. So it is necessary to include creditors in this section, but not shareholders. I think that is the position.
That is the position. Creditors' names, descriptions and addresses would not be available otherwise than in this report whereas the shareholders' names and particulars would be.
What I have really in mind is that once we were giving any information to the creditors under the section the shareholders might get the same information. I know that they can get it if they go themselves to the Companies office and if the company is gone into liquidation they can go to the receiver.
The information required here is about creditors, not information to creditors. The information that will be given will be available in documents to be filed with the registrar. Any member of the company seeking that information will have to go to the registrar to get it. If he wants to get information about the creditors of the company, he must go to the Registration Office and there he can also get information about the shareholders. There is no obligation on the receiver to send out information about shareholders. I think it would be too onerous an obligation to impose on any receiver. Such an obligation could easily run away with the assets. The intention is to make this available on the payment of a small fee in the Registration Office, if anyone wants to look up the names of creditors. He can also, in the same place, look up the names of shareholders so I think the purpose of the Senator's amendment is very adequately served in the Bill as it stands.
I will accept that.
