NEW VICTORIAN COMPANY LAW

Press, Volume LXX, Issue 21257, 31 August 1934, Page 11

NEW VICTORIAN COMPANY LAW

* MINISTER SPEAKS OF | "GIGANTIC FRAUD*' ! ALLEGATIONS THAT ENQLIIO ! IS BEING HAMPERED ; sli.tvE» a ssikm r:o.- ■ ■ !■ v 1 TE LEG a.'. i'U COPTP, 10 FIT.) j (Received August 30, 7.20 p.m.) ' SYDNEY, August 3J. i The Melbourne correspondent of: the ''Sydney Morning Ilerald" says: ; Drastic powers to investigate the : affairs of any company operating; in Victoria have been conferred j upon the Attorney-General by the j Companies (Special Investigations) | Bill which has been passed by the | Legislative Assembly. | Mr lan Maci'arlan .(Attorney- | General) said the measure was | necessary to facilitate examination : of the affairs of certain companies akin to those which were the subject of investigation in New Zea- : land. New South Wales, and South i Australia. He added: j "Two main companies are con- ; cerned here, and an accountant has | prepared a report of their activi- i ties so far as the law allows. "The South British National [ Trust Ltd. is one of the companies j concerned, and the gist, of the re- j port shows that the scheme out- j lined in its prospectus is extremely j ingenious, but to my mind a gigantic ; fraud. I "The position is that ill places out- j side Victoria these companies are j operating in an extensive fashion, i "In places where investigations are being conducted the books are being got rid of to hamper the enquiry, and it is not improbable that some of these books find their way to Victoria.'' Referring to another company, the Commonwealth House Invest- i ments Company, Ltd., Mr Macfar- | lan said clients were induced to take up bonds which were in the I nature of an investment and couM j later be used for the'purchase ofj a home. j The company appeared to have i lost practicallv the whole of its j paid-up capital. His firm impres- ; sion was that the company was in- : solvent. I In the committee stage of the bill an amendment providing for the : prohibition of share hawking under ' penalties of six months' imprison- . ment or a fine of £2OO was agreed ! to. _ ' ' The Victorian enquiries will not [ be made by a Royal Commission but by competent insDectors. The bill I authorises prosecutions if they are j advisable, and legal action to have : companies wound up.