asked the President of the Board of Trade, in view of the statement by Mr. Neville Faulks, Q.C., in his official report that Section 54 of the Companies Act, 1948, is regularly ignored, what action he intends to take to ensure its observance.

My right hon. Friend is always prepared to consider the question of proceedings if evidence is available which would seem to justify a prosecution. He feels, however, that the questions posed by this Section, including the adequacy of the penalty, need to be examined afresh. The Jenkins Committee which is reviewing company law has received evidence on this subject and will no doubt deal with the matter in its report.