The University Magazine Volume 10 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated.1907 Excerpt: ... NE of the aims of Imperial Company Legislation from the time of the Act of 1862, has been to exercise & supervision over Companies that offer their shares to the public, and at the same time to give as great freedom to the company as is consistent with protection of the public. In working out the provisions of the Act of 1862, experience showed the desirability of certain amendments, with the result that the tendency of the legislation in respect to the supervision of companies has been towards greater stringency in the methods designed for the protection of the public, chiefly in the direction of compelling a company which offers shares to the public to take the public into its confidence in respect to its affairs. It is proposed in this article to make a comparison of the'provisions of Canadian with Imperial legislation in respect to this matter of protection of the public. Some of the principal methods adopted with a view of exercising a supervision over joint stock companies are: (a) The requirement of annual returns to the government. (b) The regulation as to the issue of the prospectus and as to what it shall contain. (c) Compulsory appointment of auditors. It will be convenient, therefore, to make our comparison under these headings. A. Annual Returns.--The Dominion legislation as to returns followed the provisions of the Imperial Act of 1862, but stopped there. In other words, none of the subsequent amendments as to returns enacted by Imperial legislation have been adopted by the Canadian parliament. In fact, Canadian company legislation, provincial and federal, presents rather a motley appearance in this as well as in some other respects. We find, for example, that, whilst the Canadian Act is still clothed in some of the cast-off sections of the Im...