COMPANY ISSUES

Greymouth Evening Star, 13 February 1936, Page 7

COMPANY ISSUES

PROTECTING THE PUBLIC. [bbitish official wireless] RtiGBY, February 11. Questioned in the Commons, regarding the system known as Stock Exchange introductions and offers for sale, and asked if he would set up a departmental committee to suggest safeguards for the public, the President of the Board of Trade (Mr. Riinciman) informed the House that the Committee of the Stock Exchange had to-day posted a notice on this matter. The notice states that the Committee had undei’ consideration the representations which had been made to them that the distribution of securities, by means of private placing, as opposed to prospectus or offer for sale, reacts unfavourably upon the public. In the opinion of the Committee, it is desirable that all issues, particularly those of ordinary capital, should be made by prospectus, or offer for sale, unless from a public standpoint, the necessity or advantage of private placing, is indicated .by circumstances. The chief objections to private placing, which has been urged are lack of publicity for the issue, the possibility of facilitating placing of undesirable issues, and that it deprives the public of the chance of securing interest in good issues, on as favourable terms as if they had been offered for sale by prospectus. Mr. Runciman announced that he had decided to appoint a Departmental Committee to inquire into the subject of “fixed trusts,” in all its aspects.