BANKING ENTERPRISES

Auckland Star, Volume LX, Issue 246, 17 October 1929, Page 28

BANKING ENTERPRISES

EVASION OF THE LAW. REGISTRATION IN AUSTRALIA INTERESTING QUESTIONS RAISED. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Wednesday. Two questions to ,the Government were tabled in the House of Representatives

I"? to-day, hy Mr;' McConibs' relating to new banking corporations proposing to operate , in New Zealand. He stated that since Parliamentary authority had been given for the formation of one new bank in the Dominion two other banking companies, with New Zealand directorates had been ' promoted and registered in New South Wales 'to avoid New Zealand restrictions. Both had issued prospectuses in New Zealand which do not comply with tho New Zealand Companies , Act. "And one of such companies has," ho continued, "already been placed inliquidation at considerable loss to the' f-ltbscriberSj who are forced to bear promotion expenses." He asked if the Government will tighten up the provisions Of the law relating to the promotion of companies, and. prohibit .issue of prospectuses, whether of companies registered in New Zealand or abroad, which do j)ot,'Comply with the New Zealand Companies Act?

- ■ In. a further question Mr. McCornbs asked if it is a fact that prospectuses of many new companies recently promoted by" Share selling concerns do not comply with the' provisions of the Companies Act, and, if bo', wiry the registrar of companies cannot, or is unable to take steps to enforce compliance for protection of the public?