Companies Asked For Interim Reports

Press, Volume CI, Issue 29764, 6 March 1962, Page 17

Companies Asked For Interim Reports

<N«w Zoalcnd Prasg AgkocUtion) AUCKLAND, March 5. All listed companies will be asked to forward to the Stock Exchange Association of New Zealand for press release half-yearly reports on trading results. This decision was made at the annual conference of the association at Waiwera last week.

These reports will include comparisons with the corresponding period of the previous year, together with comment on any unusual factors affecting the earning capacity, of the company. It is intended later to incorporate this recommendation in the listing requirements. It was noted at the conference that half-yearly re-

ports are produced by listed companies in Australia, while the New York stock exchange requires quarterly reports. The conference viewed with concern cases brought to its notice in which companies had sought capital from their shareholders or the public on the strength of what proved to be out-of-date accounts. It was decided that the Christchurch Stock Exchange should set up a committee to make suggestions on what final information should be supplied by companies intending to raise fresh capital between balance dates. It was stated that the step was being taken to safeguard the public against an issue being made by a company on the basis of a satisfactory balance-sheet when the position of the company had since deteriorated. When the suggestions are approved it is intended to write them into the listing requirements. It is also likely that the association will approach the Government to have similar provisions included in the Companies Act.