Nick Leeson, Barings And Company Law

EDM number 844 in 1994-95, proposed by Frank Cook on 16/03/1995.

That this House notes that Nick Leeson was engaged by Barings Securities (Futures) Ltd, a company registered in the Cayman Islands; that he acted on behalf of this company in Singapore as a trader; that under clause 100 sub para (a) of Barings' Articles of Association Leeson is 'indemnified and secured harmless out of the assets and funds of the Company against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by him in or about the conduct of the Company's business or affairs'; that Leeson stands charged publicly by his employers with responsibility for Barings collapse; that under the Companies Law, Barings carry responsibility for protecting an supporting their employee; that to date the company have patently failed to fulfil that obligation; that should Barings be permitted to neglect that corporate duty then no representative of any company of limited liability will ever again be able to feel properly protected and secure in their employment; and believes that the Bank of England in its supervisory capacity whilst undertaking its current investigation into these matters should together with the DTI take all the foregoing into full account and use its best endeavours to ensure that Mr Leeson is returned to this country to receive a full and fair hearing of all sides of the case and so dispel the growing public anxiety at the so called self regulatory systems of the banking and insurance institutions. (Relevant registered interest declared).

This motion has been signed by a total of 33 MPs.