Difficulties With Take-Over Bill

Press, Volume CIV, Issue 30678, 18 February 1965, Page 17

Difficulties With Take-Over Bill

Difficulties in the interpretation and implementation of the Overseas Take-over regulations, especially in the definition of an “overseas concern,” are seen by the Stock Exchange Association of New Zealand.

At its annual conference which ended at Hanmer Springs on Tuesday, the association said that the takeover regulations had become law without interested parties being given the chance to bring the benefit of their views and knowledge on such far-reaching and important matters. “Had Parliament discussed these regulations in bill form it is certain that many of the anomalies now coming to light could have been avoided and everybody better informed,” said the association’s statement. “It seems wrong for such well-known New Zealand companies as Fletcher Holdings. Woolworths N.Z., Bing Harris, Felt and Textiles of New Zealand, and Tasman Pulp and Paper to be regarded as ‘overseas companies.’ “It would also appear that the regulations make for unreasonable delays, thus bringing into the share market a speculative element in the event of any leakages. “There may well be' very good reasons for the grafting of the regulations! in their present form, but interested parties are left to express their concern publicly by means of newspaper statements,” the statement concluded. Brokerage Rates A change in brokerage rates was approved by the conference in anticipation of the introduction of decimal currency in Australia next year and in New Zealand in July, 1967. Shares up to a market value of 10s will have a brokerage rate of per cent plus ss-a 100 units or part of 100 units.

The present rate of lj per cent for shares above 10s will still apply. The new rate for unlisted shares will be 2{ per cent on shares above 10s and 2| per cent plus 7s 6d a 100 shares below 10s.

The consent-to-act fee of £5 5s will be reduced to £5. Because the conference wants to adhere to the desire of the Decimal Currency Board that necessary changes in procedure should not involve increases in rates, the new rates have been referred to the board for consideration. Share Turn-over Ways of more adequately reporting the total turn-over of business done by New Zealand exchanges will be explored, the association decided.

A close liaison is being kept with the Melbourne Stock Exchange, the only Australian exchange to adopt the practice of reporting all business done by members. Fidelity Fund Almost £25,000 has been received from members for the stock exchange members’ fidelity guaranteed fund, gazetted in December. A further reserve liability can give a similar sum if needed, the conference was told. The fund’s purpose is to meet the just claims from those who have lost money from a sharebroking transaction where a member was unable to meet his financial obligations. Listing Requirements Companies had been responding well to new listing requirements, said the president (Mr J. B. Taylor, of Christchurch). One difficulty was the clause which made it mandatory for directors to recommend to shareholders any changes in articles to comply with the altered listing requirements. Re-elected Mr Taylor was re-elected president of the association for the third time. Mr A. W. Macarthur (Wellington) was elected vicepresident. The executive comprises Messrs J. S., Rutherford (Auckland), T. J. Chamberlain (Christchurch), W. F. Sligo (Dunedin), and F. K. Knox (Invercargill). The annual conference decided on the following holidays for 1965: Easter, from 5 p.m. on April 15 to April 26; Christchurch, from December 23 to January 17, 1966.

Members have been given authority, as in the recent past, to open their offices earlier to handle Australian business.