COMPANY COMMISSION

Evening Post, Volume CXVIII, Issue 101, 26 October 1934, Page 9

COMPANY COMMISSION

STATUS QUO SUGGESTED

ADDRESS IN DEFENCE

SYDNEY, October 25.

When the Eoyal Commission inquiring into company affairs resumed today Mr. Bryan Fuller, counsel for the Investment Executive Trust and the Southern British National Trust, Ltd., addressed tho Commission in defence of the companies.

He said that when anybody complained about unfair dealings by agents the assignment of their deposits in the defunct Primary Producers' Bank for debentures had been cancelled, while of the persons who had invested in trust debentures SO per cent, wore of a type well able to protect their own financial interests.

Alluding to tho question of winding up, Mr. Fuller argued that it was questionable whether, if the Commissioner recommended special legislation to meet special cases, it should be made retrospective.

I The Commissioner, Mr. Justice Halse Eogers, replied that ho would recommend the adoption of emergency legislation if he found the position was one of emergency. The future of tho trusts 'was doubtful, because the amount of ! debenture capital they could get in was I problematical. * Mr. Fuller suggested preserving the existing order of things until the view* (i£ debenture-holders were ascertained.

The Commissioner: What guarantee can be obtained that the assets of the companies will not bo wasted in the meantime?

Mr. Fuller said that undertakings could be provided and accredited accountants placed in charge of tho companies' books, preserving the assets as well as any receiver. Legislation of an emergency character might inflict most harm on debenture-holders in NewZealand. The ' Commissioner: If I find the charges proved I shall recommend the entire removal of those who have been

in charge. The Commission adjourned,