STOCK EXCHANGES

Dominion, Volume 34, Issue 127, 22 February 1941, Page 7

STOCK EXCHANGES

Official Listing Requirements

ASSOCIATION'S DECISION

The twenty-fifth anniitil general meeting of the Stock Exchange Association of New Zealand was held in Wellington on Wednesday and Thursday.

Tito following delegates were present: Mr. J. W. Fritter and Mr. W. B. Colbeek, chairman and vice-chairman of the Auckland Stock Exchange; Mr. A. Hamilton and Mr. F. 11. R. Taylor, chairman and vice-chairman of the Wellington Stock Exchange: Mr. 1). L. Graham and Mr. 11. Kitsoti. chairman and vice-chairman of the Christchurch Stock Exchange: Mr. Harman Reeves, chairman of the Dunedin Stock Exchange. ami Mr. R. R. Binnie, of the Invercargill Stock Exchange. Taranaki and Gisborne Stock Exchanges were represented by proxies. Mr. Hamilton and Mr. Fra ter were re-elected president and vice-president respectively for the coming year. A number of remits from the stock exehitnges was dealt with and also certain details in connexion with dealings in the new issue of slum's in the Broken Hill Proprietary Co. Pleasure was expressed at the action of the Government and the Minister of I' inance in the extension of facilities granted for taking up and dealing in New Zealand in these new shares and so enabling shareholders here to assist the company in its war effort. Some of the most important business at the meeting concerned bringing the official listing requirements into line with those adopted by the Australian Stock Exchanges and it is. expected tpat these will be released in a few weeks’ time. Special listing, requirements were also dealt with lor share investment companies, sometimes called trust companies.

The meeting also gave consideration to the laxity on the part of the executives of many listed companies in giving prompt advice to shareholders of the recommendations by directors for the payment of dividends and the issue of new shares.

Though the association wrote to nearly all companies whose shares are publicly dealt in explaining the necessity for releasing such information promptly, many companies still fail to advise their dividends with lite result that a definite confusion arises as to who Is entitled to the dividend, the buyer or the seller. The association has endeavoured to give every assistance in this direction and the matter is now in the hands of the directors and secretaries of the companies. It w-.is decided that if companies continue to fail to advise several days ahead the date on which the transfer books are to be closed and the amount of the dividend to be paid it will be necessary to remove these companies from the official list and leave it to the shareholders to ask their directors to explain the reason. Delegates pointed out that no such trouble is given to shareholders of Australian companies, the secretaries of which give immediate public advice the moment their directors have come to a decision.