SPECIAL INQUIRY.

Auckland Star, Volume LXV, Issue 22, 26 January 1934, Page 5

SPECIAL INQUIRY.

COMPANY METHODS. COMMISSION'S PERSONNEL. POINTS TO BE CONSIDERED. I (By Telegraph.—Press Association.) | WELLINGTON, Thursday. | | The order of reference of the special | [commission which lias been appointed j ito investigate the promotion, financial [methods aiul operation of certain companies in the Dominion, was gazetted j this evening. The personnel of the commission was announced just before the end of the Parliamentary session last I month by the Minister of Finance.

| Mr. J. S. Barton, S.M., of Wellington, ( lis chairman of the commission, ancl the ( J other members are Professor H. Belshaw, |of Auckland, and Mr. F. E. Graham, of < ] Christchurch. M i The tribunal is described in the ord-n-j! | of reference as "a commission to inquire i I into and report upon the tendencies and •; i developments apparent in the Dominion I iin relation to the promotion, financial j j methods, control and operations of certain companies and other corporations, I which seek to raise capital and loan I funds in the Dominion." | I The commission will inquire more par- I jticularlv into the following matters: — j Methods of promotion and administration of such 'companies, including! | their subsidiary companies and syndi- j jcates; the scheme of control of such j (companies and the relative power and ! I right of the promoters and subscribers . ] of shares and subscribers of debenture, i bond or security certificate issues.

Financial Schemes. The financial schemes of such companies, with particular reference to the relative application of companies' anil bondholders' property and funds to: (1) Remuneration and profits to promoters and subsidiary companies; (2) formation, working' and administration expenses; and (3) protection and furtherance of the interests of holders of long term debentures, bonds, security certin [cates and like instruments or securities

Whether the benefits which may bo found at present to accrue to the promoters or shareholders in bond issuing companies through the surrender or forfeiture of bonds should be applied and accredited to the bondholders 5 funds in a particular group or series of any such bonds surrendered or forfeited, or otheiwise. Whether the provisions of the Companies Act, 1933, relating to piospectuses and otherwise, requiring the disclosure of material contracts and transactions, are reasonably adequate to protect intending investors in shares, debentures, bonds, security certificates and other like instruments. The financial structure of financial, investment and trust companies, and as to whether any additional legislative provision should be made to afford investors a greater measure of protection for their capital moneys and other inter ests in such companies. The desirability of regulating in the public interest tlie formation and operation of trust companies and companies dealing in company shared Government, local body and other forms of security. The operation of the present statute? governing the constitution and rcgul.i- ---] tion of stock exchanges in New Zea | land. The commission shall also report upon '■generally what steps, if any, should oe I taken by way of modifying existing j statute law and regulations, having regard to the present and prospective welfare of the investing public and the community generally.