A message from His Excellency the Governor General transmitting supplementary estimates for the financial year ending March 31, 1936, was presented by Right Hon. Sir George Perley (for the Minister of Finance), read by Mr. Speaker to the house, and referred to the committee of supply.
Mr. MACKENZIE KING:
Could the right hon. gentlemen inform the house if the estimates which he has just brought down will conclude those that will be presented to the house at this session or will there be still further supplementaries?
Sir. GEORGE PERLEY:
As far as I know there will be no further estimates.
Hon. C. H. CAHAN (Secretary of State) moved the third reading of Rill No. 109, to amend the Dominion Franchise Act. Motion agreed to on division, bill read the third time and passed.
That the reports made by the committee of supply on February 5, 8, 22 and 28; March 1,
4, 5, 11, 12, 14, 15, 18, 19, 25 and 29; April 1,
4, 5, and 12; June 3, 4, 6, 7, 14 and 20, be now received, read a first and second time and concurred in.
Motion agreed to. Resolutions reported, read the second time and concurred in.
Sir GEORGE PERLEY (for the Minister of Finance) moved that the house go into committee of ways and means. Motion agreed to and the house went into committee, Mr. Smith (Cumberland) in the chair.
Sir GEORGE PERLEY moved:
Resolved, that towards making good the supply granted to His Majesty on account of certain expenses of the public service for the fiscal year ending 31st March, 1936, the sum of $141,145,120.83 be granted out of the consolidated revenue fund of Canada.
Motion agreed to. Resolutions reported, read the second time and concurred in. Sir George Perley thereupon moved for leave to introduce bill No. 116, founded on the resolution.
Right Hon. W. L. MACKENZIE KING (Leader of the Opposition):
I had in mind to say to my right hon. friend a moment ago that we have no desire on this side of the house to delay the proceedings, but I do not think we ought to allow the government to get away with all the main estimates of the session until we have some definite understanding as to the time the session is to conclude. Perhaps my right hon. friend will let the bill stand at this stage and possibly before another sitting we can have an understanding as to further measures that will have to be considered before parliament prorogues.
Sir GEORGE PERLEY:
Perhaps my right hon. friend will allow the bill to be read the first time, and then it can stand.
Mr. MACKENZIE KING:
That will be all right.
Motion agreed to and bill read the first time.
The house resumed from Friday, June 21, consideration in committee of bill' No. 85, to amend the Companies Act, 1934-Mr. Cahan-Mr. Smith (Cumberland) in the chair. On section 5-Consideration for any shares allotted must be adequate. Companies Act Amendment
Hon. C. H. CAHAN (Secretary of State):
We have had considerable discussion with regard to section 5 of the bill and I am going to suggest that the section be amended by striking out subsection 9 and substituting the following therefor:
(9) Shares in the capital stock of the company having a nominal or par value shall not be issued as fully paid except for a consideration payable in cash to the total nominal amount of the shares so issued or for a consideration payable in property or services which in all the circumstances of the transaction may justly be deemed adequate consideration therefor:
Then the latter part of the clause remains as it is now:
Provided that this subsection shall not apply to any mining company..
And so on.
Mr. BOTHWELL:
What effect will that have on the no par value shares? In the old subsection 9 which is being repealed reference is made to shares, whether common pr preferred, or whether with or without nominal or par value. This new amendment simply deals with shares having par value,. What effect has it on the no par value shares?
Mr. CAHAN:
This does not apply to no par value shares because under the act as it now stands no par value shares are issued for a consideration to be fixed by the board of directors. There is a difference between no par value and par value shares; par value shares must be paid up in cash or the equivalent. All the no par value share gives is a pro rata interest in the property of the company.