Exchange appeal

Press, 14 January 1987, Page 28

Exchange appeal

The New Zealand Stock Exchange is urging investors to help overcome delays in the market by responding promptly to requests for documentation.

The Exchange president, Mr Rex Pearson, said in a statement that prompt action by investors would assist the smooth functioning of the market.

The exchange had streamlined its own procedures and was tightening requirements on brokers, Mr Pearson said. “It's time for all investors to play their part as well,” he said. The need for prompt investor response had been highlighted by the recent spate of company name changes, changes in the par value of shares and other changes requiring the re-issue of share certificates.

The five-way share split by Robt Jones Investments, Ltd, was a case in point, Mr Pearson said. “Many shareholders have been slow to return their certificates denominated in 50c shares for replacement by certificates denominated in 10c shares,” he said.

“Consequently, a series of some hundreds of transfers are held up for processing. This will cause severe problems relating to entitlements to the company’s forthcoming cash issue, unless shareholders still holding 50c share certificates return them to the registrars, as already requested”.

Mr Pearson said a number of companies had made a series of issues, spin-offs, and changes in par value over the past year.

“Unless investors, brokers and registrars all play their roles in a timely and accurate fashion, correction of errors and delays will take an inordinate time,” he said.