NEW CORPORATION

Evening Post, Volume CXIX, Issue 152, 29 June 1935, Page 29

NEW CORPORATION

MORTGAGE BUSINESS

OPENING ON MONDAY

I Officially, the Mortgage Corporation ,of New Zealand will commence its [ business on - Monday, but, as has . already been announced, it will not start lending operations for some time yet. During the past few weeks members of the staff of the State Advances Department have been busily engaged in preparatory work in con--1 nection with the corporation, and ■ there is still much to be done before it will be possible for the new institution to carry out its full functions. The Mortgage Corporation of New Zealand Act, which provided for the ■ establishment of the corporation, was passed by Parliament last session, and the directors and main executive officials have been appointed. The Act provides that the corporation is to have its head office in Wellington, and it has the power to establish branches and. agencies throughout New Zealand. In the meantime, the work of the corporation will be carried on by members of the staff of the State Advances Department who are being loaned to the new institution for a period of two years. At the end of that period the employees will have the right to decide whether they will stay with the corporation or return to the employment of the State. The control of the corporation is entrusted to a Board of Management, which is constituted as follows: Four State directors, one of whom shall be chairman of directors, and two of whom shall be joint managing directors; three shareholders' directors; and an officer of the Treasury as ex omcio director. The joint managing ! directors are appointed fop a period of seven years and are to be full-time officers. Power is given to the board to define districts within New Zealand and to appoint associate directors to advise, the board on matters affecting their particular districts. The original capital of the corporation is set down at .£ 1,000,000, divided into shares of £1' each. Of these 500,000 shares have been allotted to investors at par, and the remainder have been taken at par by the Minister iof Finance, on behalf of the ! Crown. Every share confers on the ■ holder the right to, receive from the available profits a cumulative dividend of 4| per cent . . The chairman, of "directors, of the new corporation is Sir William Duffus Hunt, and the managing directors are Mr. A. p; Park, secretary to the Treasury, and' Mr. T. N. Smallwood, manager of the Auckland Savings Bank. Mr. James Robertson, a Waikato farmer, is the fourth State director, and the shareholders' ■'-.directors are Messrs. G. A. Lewin, Dunedin; L. W. Nelson, Whangarei; and C..R. Smith; Dunedin. Theex officio director is Mr. B. C. Ashwin, second assistant secretary to the Treasury.