TRUST COMPANIES

Evening Post, Volume CXIX, Issue 86, 11 April 1935, Page 9

TRUST COMPANIES

AGAINST LIQUIDATION

APPEAL TO LEGISLATURE

SYDNEY, *April 10.

The Legislative Council passed tht Trust Companies Liquidation Bill after postponing the clause providing for disqualification of five persons for ten years from acting- as directors of certain companies which were subject to the recent Royal- Commission of, Inquiry.

Dr. F. Louat, barrister, addressed the House oh behalf' of a section of the debenture holders in the Southern British National Trust! Ltd., which is to be liquidated. He asked for the right to carry on and to be given control of assets. He said that a ballot had revealed that debenture holders were opposed to control, by the Public Trustee. He added that the assets oi the trust ranged from 16s, 6d in the £. to 19s Id according to the valuation of the Trust Building.

Mr. H. E. Manning, Attorney-Gen-eral, said that he was staggered by; some of the arguments of Dr. Louat. The Royal Commissioner had unequivocally denounced the''plan of reconstruction, which' was inspired by Mr. McArthur. Moreover, expert opinion, favoured liquidation while the debenture holders represented by Dr. Louat comprised only one-third of the people .concerned. Mr. Manning emphasised that as there would .be proceedings before the Cpurts, with respect to liquidation, the Government regarded it wise to allow the clause about the disqualification of certain persons to remain' over until after the liquidation.