Bank of New Zealand

Dominion, Volume 26, Issue 67, 12 December 1932, Page 11

Bank of New Zealand

Sir, —I regret, to find that the restrictions now placed on the transfer of shares from the New Zealand register to the London register are apparently absolute aud unqualified, although injurious to the interests of some shareholders, and uot beneficial to the others.

Unless, iu the original prospectus, the board stipulated that they should have Ibis power, or unless the shareholders have expressly given it to them since, I doubt whether they are entitled to spring ou shareholders something very much in the nature of a concealed power. I should be glad if you could state the board’s reason for their action, and their authority. And will shareholders going Home, leaving their shares perforce on the New Zealand register, receive their dividends in London at the same time as New Zealand shareholders, or will they have to wait five weeks? In the absence of a full explanation, little things such as this closed transfer register and paying shareholders on the Home register in our currency are likely to irritate investors at Home and here, aud a feeling of that kind soon spreads. No one should know this better than bankers. I suggest to the board that they should take the necessary steps to enable them to remove both the above annoyances, the latter of them, indeed, being au admitted injustice.—l am, etc., INTERESTED. Wellington, November 30.

[We are given to understand that it is at all times left to the discretion of the directors of the company to prohibit or permit transfers of shares from one register to another where more than one share register is in existence. On making inquiries from the Bank of New Zealand we are informed that the action taken by the bank xvas the same as that taken by a number of other companies having English, as well as Dominion share registers, and that the whole purpose of the prohibition was to prevent shares being trafficked in for exchange purposes. It is recognised there may be some hardships.)