COMPANY LAW TO BE INVESTIGATED

Press, Volume CIII, Issue 30396, 21 March 1964, Page 1

COMPANY LAW TO BE INVESTIGATED

Debenture Holders May ' Have More Protection (New Zealand Press Association) WELLINGTON, March 20. The Company Law Advisory Committee, which was in a large measure the architect of the legislation on take-overs last year, has now been given the, task, of investigating whether the protection given by the present law to debenture holders is satisfactory. / ■ :

In reply to a question, the Minister of Labour (Mr Shand) gave this information on behalf of the Minister of Justice (Mr Hanan).

Mr Shand said the investigation was being undertaken as a result of the disclosures after inquiries into the activities of the Reid Murray group in Australia where the

public 'lost a considerable sum which had been lent to the group; “In matters of this sort prevention is infinitely better than cure and the Government therefore wishes to ensure that the law is adequate to prevent the possibility of a similar abuse, in New Zealand,” Mr Shand said.. . ..’ He said the Company Law Advisory Committee was studying the report of the

official investigation into the Reid Murray group and . the Companies “(Public ' Borrowings) Act passed last -year by the Victorian Parliament and proposed to be copied in other Australian states.

One important feature of this legislation was' the increased responsibilities placed on the trustee for the debenture holders to act as a watch-dog over their interests.

Mr Shand said that the Government would make a public announcement when the Company Law Advisory Committee had made its report and recommendations. .'.