WINDING-UP SOUGHT

Press, Volume CII, Issue 30091, 27 March 1963, Page 17

WINDING-UP SOUGHT

New Victorian Move (N.Z. Press Assn.—Copyright) MELBOURNE, March 26. A special investigator has recommended to the Victorian Government that it wind up the affairs of eight companies by Court order. The report of Mr P. H. N. Opas. Q.C., was tabled in the Victorian Parliament today He said the companies were unable to pay their debts, and iit was in the interests of the public and of creditors that they be wound up. The first company named in the report was Fiesta Constructions (Geelong), Pty., Ltd., formerly known successively as Mutual Constructions, Ltd.-, Mutual Constructions, Pty., Ltd., and Mutual Constructions (Geelong), Pty., Ltd. Other companies named —mainly of similar names—were in Bendigo, Ballarat and Melbourne. Misleading Statements Several times in his report Mr Opas attacked prospectuses that contained untrue and misleading statements. Of one. full of cartoons and diagrams, he said: “At best it is a most undignified document unworthy of tihe title of prospectus, but it is in keeping with the present trend of appealing to the small investor at the lowest possible level of mental intelligence.” O' another he said: “I merely repeat that I regard the prospectus as thoroughly false, blatantly misleading, and quite unjustified. “The prime evil of this company is that with negligible capital. indeed none at a'll When one analyses it. it is able to go to the public and receive money in excess of £200,000 to speculate with." Mr 9pas commented on the confused formation of some of the companies and his work of “traversing the tangled toils of this labyrinth of companies.”