UNOFFICIAL LIST SHAKES

Press, Volume LXXIII, Issue 22110, 4 June 1937, Page 12

UNOFFICIAL LIST SHAKES

QUOTATIONS TO BE DISCONTINUED STOCK EXCHANGE DECISION (PRESS ABSOCIATIOH TBLKOEAH.) WELLINGTON, June 3. Several important questions connected with the listing of stocks and shares on the New Zealand Stock exchanges, were discussed at a special meeting of the Stock Exchange Association of New Zealand, held "Wellington on Wednesday and yesterday. These present were Messrs H. K.uson, chairman of the Christchurch Exchange, J. W. Frater, chairman of the Auckland Exchange, Harman Reeves, chairman of the Dunedin Exchange and Andrew Hamilton, chairman and G. T. George, vice-chairman, ol tne Wellington Exchange. Mr Kitson, who is president of the Stock Exchanse Association, said that one of the important matters discussed was the publican of the "unofficial list" which included stocks and shares of companias which either had not applied to be officially listed on the Stock Exchanges, or whose articles oi association did not comply with the official regulations for listing. He sag that it did not appear to be generally known that the listing regulations ot the Stock Exchanges contained provisions deemed necessary tc.assist in safeguarding the rights of shareholder!SoW five or six years ago it was felt that the use of the unofficial list might give further■protection to dealers in certain "ttle-known shares. There had been cases m which unwary investors had been induced to pay unwarranted prices for shares, and for this reason it was thought that the publication ofQuotations in an unofficial list might act as a safeguard to investors. Experience had shown, however, that the unofficial list nad given as good a market in the way of published quotations, as the official list gave to the shares of those companies which haa complied with the listing regulations. Moreover, the stock exchanges had had no power in the case of shares on the unofficial list to enforce the regulations des'gned for the protection of shareholders. Consequently, the Stock Exchange Association had decided to discontinue the publication of the unofficial list as from December 1, 1937, and in the meantime no additions would be made to the list except in special circumstsnecs Mr kitson further stated that it had been decided shortly to publish a set of special listing requirements for investment trust companies on the lines of those recently adopted by the Australian Stock Exchanges. Attention was also drawn to the fact that recently certain companies whose shares were officially listed had failed to observe some of the conditions ot listing, and it was decided that any future cases of the Kind would be regarded seriously with the probable penalty of removal from the official list.