EXCHANGE ON DIVIDENDS

Hawera Star, Volume L, 24 February 1931, Page 4

EXCHANGE ON DIVIDENDS

SHAREHOLDERS MAKE PROFIT. GRAVE INJUSTICE ALLEGED. (By Telegrapn —Bresa Aaaooiatloa.J CHRISTCHURCH. Feb. 23. A meeting of shareholders of the Bank of New South Wales was held at Christchurch this afternoon, about 100 being present and several apologies being received with accompanying letters saying the writers would be willing to support any action taken by the committee. The following resolution was carried: That this meeting of Christchurch shareholders of the Bank of New South Wales strongly protests against the action of the directors in their proposal to pay future dividends from Sydney, on the following grounds: (1) That the deed of settlement provides for payment of the dividend at the offices of the local register, which provision to the ordinary shareholder is obviously intended to ignore exchange differences ; (2) the Bank of New South Wales is as regards its New Zealand capital and business really domiciled in New Zealand; (3) profits made from its New Zealand business would be available for payment of the quarterly dividends without any reductions; (4) the deduction of the present arbitrary rate of exchange of £lB 12s 8d would inflict on New Zealand shareholders a grave injustice, involving them collectively in no less a penalty than £15,092,034 per annum, based on a 9 per cent, dividend and the present rate of exchange. A further resolution that a committee be appointed to draw_ up a' request to the Government that it consult the Crown Law officers with a view to investigating and introducing a clause in the Companies Act compelling any companies trading in New Zealand and with New Zealand registers to pay their dividends in New Zealand currency, and also that the same committee take further steps to forward the protests passed at the meeting was carried! without dissent. Dr. A. S. Sandston (convener) and Messrs. George Gould, T. N. Gibbs, W. S. Newburgh, C. G. McKellar and JD. Hall were elected the committee.