Orders of the Day — Financial Powers (U.S.a. Securities) Bill.

Part of the debate – in the House of Commons at on 25 July 1941.

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Photo of Sir John Mellor Sir John Mellor , Tamworth

But may I draw the attention of my right hon. and learned Friend to paragraph 6 (1) of the Draft Regulations? It begins in this way: 6.—(1) In these regulations the expression owner,' in relation to any security, includes any person who has power to sell or transfer the security, or who has the custody thereof. … I suggest, therefore, that what would happen in practice would be that the Government would require the banker—or whomsoever the security was deposited with—to deliver the security—that is, the certificate—to them and that, except that they might require the shareholder to execute a transfer so that the security became saleable, they would not have to require the shareholder to do anything or to pay off his loan. That would remain secured by such rights as the banker would have to receive payment from the Government. My point was that the banker or whoever else the certificate may have been deposited with would not only receive payments on capital account, but would also receive payments in respect of income, and I suggest that that would very definitely alter the position of the shareholder.