Guidelines secret

Press, 14 July 1982, Page 35

Guidelines secret

PA Auckland A committee formed to hear appeals against the Government's freeze on company dividends, bonus issues, and directors' fees has decided not to release details of the guidelines it has adopted. This is in spite of the fact

that its rulings so far are causing confusion in commercial circles. This especially applies to bonus issues where some companies have been given approval to proceed with their pre-freeze plans while others have failed in their applications. Yesterday. Morrison-PIM joined the list of companies that have lost their appeals. The company's general manager (Mr R. G. Suther-

land) expressed his disappointment at the refusal, saying that the bonus plan was not simply a matter of giving something to shareholders.

The company had been doing well in recent years and an increase in capital had been considered neces.sary to provide a wider base for financing further expansion.

The general manager of finance and company secretary of Farmers' Trading Company, Ltd. Mr C. R. Horton, said yesterday that his company's' bonus, which had been approved by the committee, was an essential part of the financial package being used to pay for the company's SI2M expansion into the South Island. Other decisions handed down by the committee include a yes to Carter Holt's one-for-ten bonus and Freightways Holdings, Ltd's bonus on conversion of its specified preference shares. Noes have been given to N.Z. Forest Products, Ltd, on its one-for-ten bonus plan, to N.Z. United Corporation. Ltd. on its one-for-three bonus, and N.Z. Steel on a one-for-ten bonus.

In each case, it was understood the committee's decision' was sent in a standard letter which did not give specific reasons.