BUSINESS IN SHARES

Gisborne Herald, Volume LXVIII, Issue 20487, 22 February 1941, Page 10

BUSINESS IN SHARES

STOCK EXCHANGES ADVICE OF DIVIDENDS CONFERENCE CRITICISM (Pur Press Association.) WELLINGTON, this day. The twenty-fifth annual general meeting of the Stock Exchange Association of New Zealand was held in Wellington on Wednesday, and Mr. A. Hamilton, of Wellington, and Mr. J. W. Frater. of Auckland, were re-elected as president and vice-president respectively for the coining year. A number of remits from exchanges were dealt with and also certain details, in connection with dealings in the now issue of shares in the Broken Hill Proprietary Company. Pleasure was expressed at the action of the Government and the Minister of Finance in extending the facilities granted for taking up and dealing in New Zealand in these new shares, and so enabling shareholders in the Dominion to assist the company in its war effort. Some of the most important business at the meeting was in connection with bringing the official listing of requirements into line with those adopted by Australian exchanges. It is expected that these will be released in a few weeks. Laxity Alleged Special listing requirements were also dealt with for share investment companies, sometimes called trust companies. The meeting gave consideration to laxity on the part of executives of many listed companies in giving prompt advice to shareholders of recommendations by the directors for the payment of dividends and the issue of new shares. Although the association wrote to nearly all companies whose shares are publicly dealt in, explaining the necessity of releasing such information promptly, many companies still fail to advise their dividends, with the result that confusion arises as to who is entitled to the dividend, the buyer or the seller. It was decided that if companies continue to fail to advise some several days ahead of the date oh which the transfer books are to be closed and the amount of dividend to be paid, it will be necessary to remove these companies from the official list and leave it to shareholders to ask their directors to explain the reason. Delegates pointed out that no such trouble is given to shareholders of Australian companies, the secretaries of which give immediate public advice the moment their directors have come to a decision.