BANK OF NEW ZEALAND.

Auckland Star, Volume XLIV, Issue 82, 7 April 1913, Page 5

BANK OF NEW ZEALAND.

THE DEBENTURES SCHEME. NOT APPROVED BY DIRECTORS. (By Telegraph.—Press Association.) WELLINGTON, this day. Regarding a London cablegram, published on Saturday, referring to the Bank of New Zealand, Mr. Beauchamp, in an interview with a "Post" representative, said that the meeting was convened by Mr. Martin Kennedy, one of the representatives of the shareholders, to place his views and those of his colleague (Mr. Watson) before them. The principals and scheme to be submitted to Mr. Keanedy had not been sanctioned, or even discussed by the Board in Xew Zealand, or the sub-board in London. Such being the case, Mr. Kennedy and Mr. Watson were acting quite independently of their colleagues. The Government nominees, to his (Mr. Beauebamp's) mind, were, attempting to put the cart before the horse.; As to whether that was judicious or not l ■ he left others to say. Meanwhile he desired to say that, with a view to dealing with the £1,000,000 four per cent guaranteed Ktoek which matures next year, and seeking to obtain in next session of Parliament legislative authority to increase the capital of the bank, he would at an early date submit proposals, to the board, "which he trusted would be recognised as fair and. equitable, not only to shareholders, but to the public. Unless he was greatly mistaken, Parliament would never -agree to such a radical alteration in the constitution of the I bank as outlined in Messrs. Kennedy and Watson's scheme. In his opinion, there was no justification for such a demand.

The cablegram referred to read as tollows: —"A meeting of tlie London shareholders in the Bank of Kew Zealand will be held on Tuesday. Resolutions will bo proposed requesting the Board o* Directors to pay off the debentures, amounting to £1,000,000. which will mature in 1914, from its own resources. The shareholders also claim that control of the bank's affairs should be restored to them by a reconstitutiqn of the board, giving the Government a "minority representation.. They propose that the Government should retain its power to appoint the auditor, and its present. power to veto any resolution by the shareholders. This, it is claimed, will equalise the control. The shareholders are prepared, when the- board is reconstructed, to furnish £2,000,000 of additional capital, as it is required/ .