Investors’ Rights Main Concern

Press, Volume CVI, Issue 31332, 31 March 1967, Page 14

Investors’ Rights Main Concern

(N.Z. Press Association—Copyright)

SYDNEY, March 30.

Protection of shareholders’ rights to maintain their equity in a company at all times was a fundamental requirement of the London Stock Exchange, the chairman (Mr R. F. M. Wilkinson) said in an address to the Sydney Stock Exchange.

In Australia there does not seem to be the same insistence on these rights.

Mr Wilkinson said in some respects the Stock Exchanges in Australia were ahead of London in their requirements. In others they were not far behind London and were catching up fast. He said the London Stock Exchange saw no reason for, or any demand for, a Securities Exchange Commission or other form of Government supervision. Earlier Warning The maximum in the way of rules or law could never prevent fraud or bad management, but they could give earlier warning of such happenings. The London Stock Exchange now required details of directors’ interests or share dealings and service contracts, Mr Wilkinson said. He added: “All this is ob-

tained and more under the terms of the agreement which companies making application for listing must sign with the Stock Exchange, and full compliance is obtained from companies already listed quite voluntarily.” Ahead Of Law A great many of the Stock Exchange requirements were ahead of the law and many of them were recommendations of the Jenkins Committee of 1961—which had not yet been implemented, Mr Wilkinson said. “But the Stock Exchanges led the way and set the background whereby a fair, informed and free market exists,” he said. Mr Wilkinson stressed that a role of the Stock Exchange was to see that maximum information in regard to all securities traded was constantly available. Must Be Up-dated “This is covered initially on admission to listing, but must be kept up to date, and there arises the requirement for six monthly reports which must include profit figures. “Turn-over in our view cannot be made a requirement, but in pur experience a request for this is almost universally successful except where disclosure is harmful to a company.”

Mr Wilkinson dismissed theories that Britain was on the way out. “We are on the way in or up, whichever way you like to put it,” he said. Sterling Up Again

Sterling rode high again, the balance of trade was coming to a point of overall credit, the Bank Rate had been reduced twice, exports were up, and production was growing, he said. “We in Britain are certainly keen to share in the immense potential development of this country,” he said.