Companies Act, 1929 (Directors' Fees).

Oral Answers to Questions — Coal Industry. – in the House of Commons on 30th April 1940.

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Photo of Sir Joseph Leech Sir Joseph Leech , Newcastle upon Tyne West

asked the President of the Board of Trade (1) whether he will, by amending the law, or by other existing power, require that limited liability companies shall, where disclosure is already necessary in their published accounts, gross up the amounts of all directors' or managing directors' and officials' fees or emoluments now disclosed as tax free or free of tax;

(2) whether he will include in the forthcoming amendments of the Companies Act, 1929, a clause to prohibit publication of the amount of fees, emoluments, or salaries to directors, managing directors, and officials of limited liability companies, in the form described as tax free or free of tax?

The Parliamentary Secretary to the Board of Trade (Major Lloyd George):

The requirements suggested could only be imposed by special legislation which my right hon. Friend cannot undertake to introduce in present circumstances. The matter has been noted for consideration when the amendment of the Companies Act is under review, and meanwhile I would remind my hon. Friend that the Act already provides that, in computing for the purpose of any statement to be furnished to members of a company under the provisions of Section 148, the amount of any remuneration or emoluments recevied by any director shall, if the company has paid on his behalf any sum by way of Income Tax (including Super-tax and Surtax), be increased by the amount of the sum so paid.