N.Z. Insurance Company’s Directors’ Fees

Press, Volume CI, Issue 29901, 15 August 1962, Page 21

N.Z. Insurance Company’s Directors’ Fees

The 10 directors ot the New Zealand Insurance Company, Ltd., drew £Ol5B in fees end expenses in the year ended May 31, 1962 They Were entitled to draw £40,800. Thia ia stated in a memorandum to shareholders explaining proposed changes tn the company's articles of association. Under the existing articles, directors are entitled to receive as remuneration £2OOO a year among them. With a further £5OO for every £7500 of dividend or bonus above £30,000. On last year’s £612,000 distribution to shareholders, the directors would have been entitled to draw £40,800. “It need scarcely be mentioned that directors have not for very many years accepted remuneration on this basis," the memorandum says. “By mutual arrangement since 1939, no director (including the chairman) has received more than £lOOO a year." £20,0M er Less The new article which is proposed will * fix the board members’ remuneration at £20,000 “or such lesser fee as they may from time to time determine. This lb designed to enable some increase to be made in the remuneration at present being received, but more particularly with a view to possible additions to the board.” This is one of many changes intended to bring the articles more into line with the requirements of the 1955 Companies Act, and with Stock Exchange requirements.

A director’s qualification Is reduced from 2000 to 1000 shares. With the proposed share split from £1 to 10s

units, the face value of the director's minimum holding will be reduced from £2OOO to £5OO. "Baal Appointee*”

The lower figure “is thought to be high enough yet not so high as to create any difficulty in obtaining the services of the best appointees." Power is also sought to appoint a managing director though “there is no present intention of making such an appointment" Existing articles it is proposed to abolish include those, such as the power to make emergency levies on shareholders, which are inconsistent with the principle of limited liability. Restrictions on voting rights will also be removed by eliminating the present provision which compels shareholders to wait for three months after the purchase of their shares before they may vote on matters affecting the company.

Silver Price Jumps Again LONDON, August 13. The price of silver jumped on the London mullion market today to its highest point in forty-two years. A rise of lid an ounce took the price up to 92d an ounce at this morning’s official fixing session. Since the end of June the price has risen by 4d an ounce, breaking the 1920 record last week. Observers said world consumption of silver has been outstripping new reproduction from the mines for some time. Selling from United States official stocks was halted last year and China, another big seller, has not been in the market to any appreciable extent since about that time. Moonie Spuds In Number Six (NXJP.A.-Reuter—Cowriaht) SYDNEY, August 14. The sixth well at Moonie, Central Queensland's oil showing area, was spudded on Saturday. The well, the sixth at the Union Kern-Australian Oil and Gas syndicate's drilling area, was drilling ahead in sand and shale, the resident manager of the Union Oil Development Corporation (Mr Doyle T. Graves) announced today. Mr Graves said Moonie No. 7 well would be located half a mile west of Moonie No. 4, and drilling would begin in about ten days' time.