Overseas company take-overs

Press, Volume CXI, Issue 32612, 21 May 1971, Page 15

Overseas company take-overs

CN.Z. Press Association)

WELLINGTON, May 19.

The Minister of Finance (Mr Muldoon) has commented on the number of company takeovers by overseas persons being referred to him for retrospective approval.

Most of these were small companies or reorganisations of the New Zealand holdings of large overseas groups. Mrj Muldoon said. Approvals! would in most cases have' been granted at the time, if applied for. However, the Overseas: Take-over Regulations, 1964, made the transfer of the shares unlawful and void if consent was not obtained, Mr Muldoon said.

Thus, if he was not prepared to give a retrospective approval to a take-over, the validity of actions by directors appointed by the pur-

ported owners would be I questionable, as would any supposed sale of their shares.' ] The sort of problems this would cause the commercial ! community concerned him—l which, was the reason for his' comments. Mr Muldoon said that the; proposed acquisition of any shares by an overseas per- i son which, together with any' shares already held, gave;: control of 25 per cent qril more of the voting power at!

i any general meeting of a New Zealand incorporated company required his consent. The Minister said that he j had asked the Reserve Bank ;to Write to the Associated 'Chambers of Commerce, the Law Society, the Account- | ants’ Society and other organisations which might have an interest, drawing attention to the need for I obtaining these consents, and the possible consequences of ! failing to obtain them.