THE WEEK IN PARLIAMENT

Press, Volume LXIX, Issue 20987, 16 October 1933, Page 10

THE WEEK IN PARLIAMENT

Hawking of Shares RESTRICTIONS IMPOSED BY BILL [From Our Parliamentary Reporter.] WELLINGTON, October 15. Severe restrictions on the hawking ot shares will, it is believed, be imposed by the amended and consolidated Companies Bill, which i.-, to be introduced into the House <>f Representatives this week. The general intention of the bill is to bring the New Zealand law into conform iiy with the recent Imperial legislation. To this end the text of Iho British act, of 1929, has been followed as closely as possible. Even 'hough some of the clauses of the net have been considered open to improvement, similar legislation is being promoted in the states of Australia and the other Dominions, so that before long the company Jaw of the whole Empire will be standardised. Where criticisms of the British act are made, and substantiated, the necessary amendments will probably be made first in the British legislation, and then followed elsewhere. The restrictions on the hawking of shares are understood to amount almost to a prohibition of this practice, and will be the subject of one of the most interesting clauses of the bill. Another clause, it is believed, lays down regulations for the auditing of companies' accounts which are very much stricter than the present regulations. The bill itself is a ponderous volume, containing no fewer than 384 clauses, and it consolidates and amends the principal act of 1908, and the amendments of 1910 1919, 1920, 1921, 1924, 1928, and 1931.

Need for Overhaul. For many years past the commercial and legal communities have been urging the necessity for an overhaul of the existing legislation, which, they say, is full of anomalies and out-of-date. When the United Government came into office in 1928, the then Attorney-General, Sir Thomas Sidey. gave considerable attention to the matter, and about 12 months after his appointment he announced the Government's decision to prepare the bill, which was to follow closely the British act of 1929. In order that the measure should meet with the approval ol all those vitally interested, the Government decided to set up a committee consisting of two representatives from the Society of Accountants two from the Law Society, two from the Associated Chambers ot Commerce, and two from the stock exchanges of New Zealand. The Government had hopes of being able to introduce the legislation within a year or so, as its urgency was fully recognised, but the committee s task proved so difficult that the introduction lv>.i had to be postponed from year to year.

A Technical Bill. The subject matter of the bill will he highly technical. There is a sufficient number of lawyers in Parliament, however, to ensure that it has p full and searching examination. The bill was finally considered by Cabinet at its meeting yesterdav and will probably be introduced by the Minister for Finance, the Rt. Hon. J. G. Coates, when the House resumes' on Tuesday. Mr Coates has so far not spoken m the House this session, but from now on lie will be busily engaged with a series of important measures. Apart from the Companies Bill, he is in charge of the Reserve Bank of New Zealand Bill, regarding which discussions with the banks are now proceeding, and which also is to be placed before the House during the coming week. Close on the heels of these two bills will come the budgetary statement for the current vear, and the estimates. While it is unlikely that any further taxation will be imposed on the community, the Prime Minister has indicated that the Government will not be in a position to grant any relief. The most eagerly sought paragraphs in the financial statement will be those dealing with the Government's exchange transactions in London. The Public Works estimates, which are now included with the ordinary department estimates, are ready for presentation, but the annual Public Works statement will be delayed until some time after the budget is before the House. The statement of the Unemployment Board's finances, which has been promised by the Minister for Employment, the Hon. Adam Hamilton, will be made during the coming week, which promises to be one of the busiest of the whole session.

Two Working Days. All the parliamentary activities lost week were overshadowed by the tragically sudden death of Mr H. E. Holland, leader of the Opposition, at Huntly, on Sunday. The necessary adjournment of the House left only two working days in the week, and both of these were fully occupied with tedious discussion of the Prime Minister's report on the World Economic Conference. This debate, on the motion that the report should be referred to the Government, is still unfinished, but now that members have had a full opportunity for discussion, it will probably be relegated to the bottom of the order paper, and remain there when the session ends. The vacant leadership of the Opposition was promptly filled by the unanimous • appointment last Thursday of the Labour party's deputy-leader, Mr M. J. Savage, whose claims to the office do not seem to have been questioned in ;my quarter. The only incident of the week was Mr F. Lye's (C, Waikato) challenging of Mr D. McDou;:ali's right to continue to occupy his seat en the Government benches, after having by his vote on the no-confidence motion definitely severed his connexion with the Coalition party. Although Mr McDougall protested heatedly against Making any move, it was announced yesterday that he has been persuaded to find new quarters on the cross benches, and when the House resumes he will take the seat formerly occupied by Mr G. C. C. Black, next to Mr C. A. Wilkinson. It is not yet certain who will replace Mr McDougall in (he Government benches.