[To the Editor of the Srizernrorp] SIR, — In your issue of
October 5th I noticed a letter on the above subject. There is no difficulty whatever in giving
greater security to investors, a reform that is urgently required, and could have been embodied in the new Company Law Bill which comes into force shortly :-
"First: All directors of new public limited companies, as well as old, should state their business, technical, financial or professional knowledge and experience, before they are elected by their share- holders.
Second : All directors should be elected only after placing their qualifications before their shareholders, in the same way as public officials have to provide testimonials for selection, as being the best all-round men for the position of truct.
Third : Any shareholder with the necessary number of shares should be eligible, instead of the present system of nomination by other directors, which often means that relatives or friends are pitchforked into the positions.
Fourth : All directors should be licensed, and in the event of their companies failing, or if it can be shown that they are useless, careless, incompetent, or a danger to the shareholders, such licence can be suspended, endorsed or cancelled. Ship officers have their certificates suspended for losing or endangering their ships and passengers' lives, and dangerous motorists are dealt with in the same way."
What is wanted in this country is restoration of confidence in the industries of the country, so that investors can feel that their capital is secure through competent, honest manage- ment, and that directors of the wrong type are eliminated and prevented from doing further mischief.—I am, Sir, &c., D. H. WILLEY. Chetwynd, Canford Cliffs, Bournemouth.
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