PROTECTION OF INVESTORS

Evening Post, Volume CXIII, Issue 142, 20 June 1927, Page 11

PROTECTION OF INVESTORS

STOCK EXCHANGE CONFERENCE

.A conference of representative* of Australian and New Zealand Stock Exchange, recently met in Adelaide and -considered several matters of mutual interest and of importance to investors. It was. deeded, among other things, that in the event of a portion of a company's issued capital consisting of preference share*, repayment of such preference capital, or any altera- |? n OI1°; *• "ght attaching thereto/shaU in no case be made unless agreed to by hold%l at t *hree-foM'os of the'issued i*«f f the.clM,, ag^. Such repayment^of capital or alteration 'of rights must.be agreed to by a resolution of holders of at least three-fourths of the issued snares of the class at special meeting of called for thy purpose. Irovided, however, that in the event of the necessary majority riot having been obtained in the manner aforesaid, consent in \vriting may be^ secured from members holding at least three-fourths of the issued shaves of the class, and «uch consent, if obtained^ within two month* from the date of the speciaVmeeting, shall have the validity of a resolution carried by vote in person or proxy. It was also resolved that directors' fees shall, not be increased except at a^gerieral meeting, and where notice of such suggested increase shall have beeu given to; shareholders in the notice cenvening that meeting. Full reports of proceedings at meetings of leading banking and industrial companies shall be supplied to shareholder*; and proposed dividends. dates of payment, and date* of. closing of transfer book* shall be supplied in the reports accompanying balance-sheets. Announcements of the intended closure of transfer books shall include specific mention of the.purpose or purposes for which the books are to be closed. Failure to give this information has penalised shareholders disposing of shares through having insufficient knowledge. AH- companies must Btate in their balance-sheets the amount of goodwill and other intangible assets. In the case of holding companies separate balance-sheets of subsidiary companies shall be published, or an aggregate balance-sheet published showing aesets and liabilities of the whole of the companies concerned. The conference repeated its advice to persons approached' by share canvassers that they should consult members of a Stock Exchange before signing any application. The conference' had knowledge of many instances'where' the public had been penalised by injudicious investment, without first obtaining the advice from members of a recognised Stock Exchange. .