TRUSTEES’ APPLICATION

Hawera Star, Volume LIV, 16 August 1935, Page 4

TRUSTEES’ APPLICATION

INCORPORATION AS COMPANY COMMISSION’S FIRST MEETING AN IMPORTANT 1 ISSUE (By Telegraph—Press Association.) WELLINGTON, Aug. 15. Apart from the financial interests of those immediately concerned considerable importance is-attached to an application made to-day to the .Bondholders’ Incorporation Commission by the trustees for the bondholders of Forestry Development Ltd. for their incorporation as a company, ihe appli. cation, made 'under the Cbmpani.es (Bondholders) Incorporation Act, 1934-35, avus the first to come before the commission, Avhieh also sat formally for the first time. An order Avas made in the terms of the scheme submitted by the trustees, subject to a slight amendment in one case and an application in another of the clauses in the articles. 1 Dir J. S. Barton, S.M., chairman of the commission, Avith Avliom Averc associated Messrs J. B. Henry and N. Duthie, referred to the interest in proceedings. There Avas tremendous interest in them in Australia, he said. He had received a letter from Sydney asking if it Avould be possible to forward a copy of the papers filed in the case, also a copy of the order made. He Avas very pleused to have an application such as this one first. The members of. the commission felt gratified that they had had a share in a work that; had been so beneficial to the company. He appreciated tho spirit in which the tAvo principal bodies iotjf uren connected Avifih the company had got together and had amie to ithe Commission Tor what practically' amounted to a consent order PERSONAL CONSIDERATION Mr H.. Taylor, counsel for the trustees of the bondholders, said the authorities he represented Avere indebted for personal consideration received from Mr Barton prior to the hearing, also for the manner in. Avhieh the hearing had taken place, as avcll as the facilities afforded the company knoAvn as Forestry Development Ltd Ho said it had been incorporated on May 1, 1926. It Avas Avhat had come to be knoAvn as a bond issuing company. It acquired areas of land in the Nelson district, part planted with forest and part intended to be planted in forest. The principal object of tho company was that the land acquired should be sold to the bondholders in accordance Avith the bond issue.

There Avas complete unanimity betAveen the bond issuing company, the bondholders and their trustees, continued Mr Taylor. The bond issuing company had afforded every facility and had assisted in every Avay possible the transfer of assets to the trustees for the bondholders, and had seen that tho bondholders had got all they-Avere entitled to under the bonds. When the Companies (Bondholders) Incorporation Act, 1934-35, avus passed it Avas decided that instead ot continuing Avith the special legislation idea an application should be made to tho Bondholders Incorporation Commission. For that purpose it Avas necessary to formulate a scheme for the incorporation of the bondholders as a public limited liability company. That had been done and the scheme hoav before the commission had been submitted to a recent meeting of the bondholders and met with unanimous approval. They , had also the full approval of the bond issuing company of Avhat had been done.