XN000022-1973-08-01 — Page 10

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Wednesday, August 1, 1973

In addition, they feel that a person acquiring control in a

takeover without having made the appropriate disclosures, should not be

allowed to retain control.

In such an event, the Registrar of Companies should be empowered

to sell on the person's behalf the necessary amount of shares to prevent

him from exercising control.

•Dealing with company accounts, the Committee says private companies

should continue to be exsyted from fing their accounts annually. The Committee believes that withdrawal of the exemption would discourage the

formation of new companies and also result in a large number of companies

winding up rather than disclose their accounts.

However, it suggests that all companies must in their accounts give

full details of their assets, liabilities, revenue and expenditure, along

the lines of the British law, with some modifications.

Companies with subsidiaries must file consolidated balance sheets

and profit or loss accounts. Moreover, companies with associated companies

must in their consolidated accounts include their share of the earnings or

losses of the associated companies.

Particulars should be given of subsidiaries and also of companies

where 20 per cent of the equity, or shares exceeding 10 per cent of the

holding company's assets, are held.

On directors, the committee states that there should be no maximum

age limit for directors.

/Particulars

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