AGAIN CHAIRMAN

Ashburton Guardian, Volume 54, Issue 155, 13 April 1934, Page 8

AGAIN CHAIRMAN

BANK OF NEW ZEALAND.

STR HAROLD BEAUCHAMP. At a meeting of the directors of the Bank of New Zealand held at Wellington on Wednesday, and on the motion of Mr W. R. Gibbs (the retiring chairman), Sir Harold Beauchamp was unanimously elected chairman for .the pnsuing year. Sir Harold’s election as chairman is in the nature of a resumption of that position. He was appointed a director of the Bank of New Zealand in 1898 and remained a director until 1907, wh.en he was elected chairman in succession to Mr F. de C. Malet. He held the chair until 1911, when he obtained leave of absence to visit England. The late Mr Martin Kennedy was subsequently elected acting-chairman and then chairman. Sir Harold retired from the board in 1912, but next year was reappointed and then re-elected chairman. He held that position all through the war years—and after—until 1922, when he again left for England and Sir George Elliot was elected chairman. Sir Harold had then occupied the chair for 14 years and, as his successor stated at the annual meeting held in 1922, “lie did not spare himself in the service of the bank. * His wide experience and business knowledge were of considerable advantage to the institution.”

Sir Harold Beauchamp on his various visits to England was always in touch with the London Board of Directors of the Blink of New Zealand.

His “wide experience” to which Sir George Elliot referred, included service as a director of the Bank of New Zealand when that institution was passing through its crisis. Its shares fcpaid up to £3 6s 8d with a liability of equal amount) were actually offered for nothing, plus a bonus of £3O, iso anxious were sellers to free themselves from the liability for the uncalled capital. Shortly afterwards tlie shares were offered at 2s 6d and 5s per share, upwards. At that time the discrepancy between the book values and market jfalues of the assets—then being administered in globo by the Assets Realisation Board—amounted to over £1,000,000 sterling, and, by statute, the bank, was compelled totally to reduce this deficiency before making any return to shareholders in the way of dividend or otherwise. This was done within a few years. The Assets Realisation Board was dissolved, and the bank then commenced to make returns to investors in its shares.

Starting with a modest 5 per cent, per annum the rate of dividend increased from time to time until, prior to the passing of an Act of Parliament, providing for capitalisation of * a portion of the reserve funds, and the general rearrangement of the share capital, shareholders received 15 per cent, on the par value of their shares, which was then £6 13s 4d, the previous liability of £3 6s 8d per share having been called up. Under the rearrangement of capita/ referred to, a further sum of £3 6s 8d per- share was transferred from the reserve fund to the credit of capital account, the paid-up value of shares therefore being £lO. Each share was subdivided into ten shares of £1 each, fully paid, and the dividend paid on the ordinary shares for 1932 was 14 1-3 per cent., and subsequently reduced to ll£ per cent. Sir Harold left Wellington yesterday in the Wanganella in order to attend a meeting- of the Board of Directors of Imperial Chemical Industries, Ltd., of Australia and New Zealand, of which he is a director. . As representative of the New Zealand Board of the Australian Mutual Provident Society he will afterwards be present'at the annual meeting of policy-holders of the society to be held in Sydney on April 27, and will return to New Zealand in the Wanganella, leaving Sydney on May 7.