In pursuance of its powers under Section 68 of the Companies Act, 1967, the Board of Trade directed the company with effect from 1st November to restrict its motor insurance business, that is to say, to cease entering into or varying contracts. The Board, being satisfied that the grounds for the direction no longer applied, withdrew it on 15th November.
I congratulate the Department on the swift action taken in connection with this company. Would my right hon. Friend answer these questions? First, why was the Companies Registration Office unable to show on the file on 21st November the names of the new directors? Secondly, is he satisfied that there are adequate reinsurance facilities? Thirdly, has any further capital gone into the company, considering the weakness of the balance sheet?
We have gone into the point about reinsurance very carefully, and we are satisfied that the re-insurance arrangements are now adequate. The reason why the new directors' names have not appeared in the Companies Register is that, because of the new Companies Act, the Registrar is temporarily behind with the filing of new registrations. The capital has been increased by a further £48,000, which brings it up to £100,000. We think that that is adequate for the insurance which the company has effected.