Companies meeting new listing needs

Press, 11 July 1979, Page 20

Companies meeting new listing needs

Commercial \

PA ' Wellington No company has yet baulked at amending its Articles to comply with the Stock Exchange Association's new listing requirements, said the Association’s executive director (Mr Earle Stewart). The changes are required to stop companies refusing to register share transfers of ownership. Mr Stewart says the aim is to ensure free market in all shares. Shareholders are being called on to approve the revised Articles at many company meetings this year — which consequently are lasting at least 10 minutes longer on average. One of the new requirements takes away most of the powers enjoyed by many company directors to refuse to accept share transfers.

In the past some companies have used this power to frustrate unwelcome takeover bids.

This right was a jealously guarded one — particularly for many older and smaller

New Zealand companies, who did not need to give a reason for any refusal.

It is understood that some years ago one company chairman set out to ensure he had the right to allow only people he knew personally and liked to buy shares in his company — and attempted to have the Stock Exchange accept his view.

He failed, and his company was not listed at the time.

The new requirement rules out the prospect of any one else attempting to control their companies this way.

In future all companies must register transfers unless the directors turn the company into an overseasowned one by so doing, or for shareholders with less than $5O. All other transfers must be accepted. Mr Stewart says he is pleased how well these older established companies are agreeing to make the changes “without any dispute at all.”

The new requirement is supposed to be adopted »by all listed companies by May 31, and to date all had responded “positively.” Mr Stewart said the Association was seeking a volun-» tary response to the new listing requirements. To date he had not attempted to check-up on precisely how the companies were matching their Articles to the draft circulated to them.

Only one query had been received. However, some companies had contacted the association arguing that they had received the draft of the new requirements too late to print the amendments and include With this year’s anual reports. “This is fair enough — and in each case the company concerned has given us a legal undertaking that they will honour the spirit of the new listing agreement until they can formally alter their Articles at next year’s annual meetings.”