Limitation of Dividends (Bonus Shares).

Part of Oral Answers to Questions — British Army. – in the House of Commons on 7 May 1940.

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Photo of Mr John Simon Mr John Simon , Spen Valley

In order to make the proposed limitation of dividends fully effective, it will be necessary to ensure that new issues of capital to existing shareholders are made on terms which do not conflict with the principle of prohibition of bonus share issues. The control of the Treasury over new capital issues affords the necessary safeguard.