BANK OF NEW ZEALAND.

Press, Volume XLIX, Issue 14761, 3 September 1913, Page 9

BANK OF NEW ZEALAND.

9 GOVERNMENT'S PROPOSALS. GUARANTEE CONTINUED. PROVISIONS FOR NEW I CAPITAL. POWERS DEFINED. (SPECIAL TO "Tire TRESS.") WELLINGTON, September 2. The Bank of Now Zealand Bill was introduced into tho Houso of Representatives this evening by Governor's Message. Tho Minister of Finance (tho Hon. James Allen) is in charge of tho measure, which precipitated a discussion immediately on its being introduced. Tho Bill will be read a second time pro forma and referred to the Public Accounts Committeo for consideration. After citing in tho preamble tho existing circumstances of the Bank and the constitution cf its capital, and specially mentioning that the £1,000.000 guaranteed stock created by tho Act of 1903 will mature on July 19tli, 1914. the measure in clause 3 provides that '"the Bank shall redeem the guaranteed stock at maturity thereof, and in order to enable such stock to bo redeemed, the Bank is hereby empowered to creato and issue further capital stock to the extent of ono million pounds sterling, having a currency not exceeding twenty years, and carrying a dividend at a rate not exceeding four per centum per annum, payable half-yearly." Machinery sections of tho 1903 and 1904 Acts aro retained to provide mainly that this stock shall have priority over all existing shares of tho Bank, whether preference or ordinary shares. All stock redeemed under this Bill shall be delivered by the Bank to tho High Commissioner of Now Zealand for cancellation. SINKING FUND PROVIDED. As security for the redemption of the stock authorised to be issued under section 3, tlio Bank shall, in tha month of March in each year during the currency of tho said stock, set aside the sum of £50,000, and shall invest tho same in debentures or other securities of tho Government of New Zealand, payable both as to principal and interest in London, bearing interest at tho rate of four per centum per annum, payable halfyearly, and maturing on the due Uato of tho said stock, and tho Minister of Finance is empowered to create and issue such securities accordingly. All securities issued to tho Bank under this section shall bo held, by the High Commissioner of New Zealand in trust to secure the redemption of the said ktock, provided that all interest thereon shall oe payable io the Bank. NEW CAPITAL. Tho directors aro empowered to raiso new capital for tiie Bank to an amount not exceeding three million pounds sterling, by tiio creation and issue of 100.000 shares, to be called "B preference shares" of £6 13s 4d each, and 300,000 new ordinary shares of £6 13s 4<l each, upon alt of which shares thero shall bo no further liability in any event whatever. Tho "B" shares aro to rank next to tho preference shares, and have priority of all other shares. Tho new ordinary shares rank equal to tho existing ordinary shares.. , Tho issue of the new shares is to be made subject to tho approval of the Minister ot Finance, and is to be in the proportion of ono "B" preference share to two new ordinary' shares, to bo offered simultaneously for subscription. Tho wholo of the capital is to be called up forthwith when tho issue is made, provided that payment may bo mado by instalments on any such issue. His Majesty shall have the first option of purchasing the whole of tho "B" preference shares comprised in such issue. In accordance with this option the Minister of Finance is empowered to purchase such shares at a price not greater than 100 per cent- of their nominal value, and is empowered to pay for them by debentures" at 4 per cent, per annum, which be may issue. These shares confer no right to convene, vote at, or otherwise take part in any meeting of the proprietors of the Bank. The preference shares shall hereafter be called "A preference shares." The B preference shares created by this Bill shall bo called '"B preference shares." DISPOSITION OP ASSETS. In tho ovent of tbo winding up or the dissolution of the Bank, tho assets thereof shall, after payment thereout ot all tho liabilities of the Bank, including its capital stock, be applied first in repaying the capital paid up on the "A" preferenco shares, next in repaying tho price paid for tho n ß'' preference shares (including any premium paid to tho Bank before the issue thereof ) and tho balance shall belong to the holders of the ordinary shares m proportion to the capital paid up thereon. OTHER- POINTS. aJiM&ticn. Th. . chief »»d.t»r may by memorandum m the mmute book, suspend tho operations of any act or proceedings of such meeting for J» dayS from the date of the fcetinß.and may by a like memorandum remote such suspension. -i.i The timber of shares in tho capital of the Bank that may be held by one ■ proprietor ia increased from 3000 to COOO It 's further provided that the sum of £4000 per year, instead of £°000 may bo divided between tne . directors, and pleo that shareholders mny csorefcp 20C0 votes by proxies instead of, as formerly, only 250.