The Directors' Liability Bill, referred by the House of Lords
to their Standing Committee on Law, was considered on Tuesday afternoon. The most important clause—the third—was finally amended so as to make every director and every promoter of a Company who has authorised the issue of the prospectus, liable to pay compensation to persons who, having taken shares, have been damaged by any untrue statement contained in the pro- spectus. It is provided, however, that if, in the case of any statement not made on the authority of an expert, or on that of a public official document, the director or promoter sought to be made liable can show that he had reason to believe the statement true, no liability attaches to him. Again, if the untrue statement purported to be that of an "engineer, valuer, accountant, or other expert," and the director or promoter believed it to be made in good faith, and further believed that the expert in question was competent to make the statement, he, the director or promoter, cannot be held responsible.
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