N.Z. INSURANCE ISSUE

Press, Volume XCIX, Issue 29108, 21 January 1960, Page 17

N.Z. INSURANCE ISSUE

Bonus Shares NonTaxable

(New Zealand Press Association) AUCKLAND, January 20.

Bonus shares of the proposed one-for-three issue from the general reserve fund of the New Zealand Insurance Company, Ltd., will, subject to the approval of the Commissioner of Inland Revenue, be treated as non-assessable income in the hands of shareholders. Accumulated profits of the company at May 31, 1956, exceeded the £1 million which it is proposed to capitalise. This information is contained in a circular letter to shareholders from the chairman of directors, Mr R. D. Horton, accompanying the notice of the extraordinary general meeting to be held on February 9. “B” Shares The bonus shares will be known as “B” shares to identify them in terms of the Land and Income Tax Amendment Act, 1959. Where a shareholder’s holdings are not evenly divisible by three, “fractions” will be sold by a trustee appointed by the directors and the net proceeds divided among entitled members. Shareholders will also be asked at the extraordinary general meeting to -econvert the existing £3 million of stock in the company to three million ordinary shares of £1 each credited as fully paid up.