THE OLD SHARES OF THE BANK OF NEW ZEALAND.

Hawke's Bay Herald, Volume XXIV, Issue 8332, 8 April 1889, Page 4

THE OLD SHARES OF THE BANK OF NEW ZEALAND.

Messrs Paine, Son, and Pollock, solicitors to the Bauk of New Zealand, bave been in correspondence with the Share " Loan Department of the Stock Exchange in regard to the nominal amount of, and existing liabilty upon, the old ' shares of the bank. In the course of a letter whicli has- been published in the , Weeiiy Official Intelligence, Messrs Paine, Son, and Pollock state as follows : — ' ' We have never bad the slightest doubt, and have been advised most positively-by Mr Phipson Beale, Q. 0., who was consulted by us last autumn in this matter on - behalf of the bank, that the effect of the resolutions passed by tlie bank share- j holders in New Zealand in October last was to reduce for all purposes the then subscribed capital of £1,000,000 iv 100,000 shares of £10 each to £700,000 in 100,000 shares of £7 each, and that consequently these shares are vow fully paid and free from liability, other than the 'reserve' liability of £10 per share imposed by tho .- Act of the New Zealand Legislature, which confirmed the deed of settlement. As to the necessary formalities accompanying the reduction of the capital, we were advised both by Mr Phipson Beale, Q.C., and Mr Cozens Hardy, Q.C., that it was competent to the members under the provisions of the deed of settlement to effect such reduction by special resolution, but that it would certainly be advisable, to save all question hereafter, to obtain a further statutory authority from the New Zealand Parliament confirming the reduction of the capital. This sanction will, we understand, in due course be applied for in New Zealand ; but we think there is a misapprehension in supposing that any authority is acquired from the New Zealand Courts, the bank not being constituted under the New Zealand Companies Act, but under a deed of settlement 4$ and special Act of Parliament. As re- ' gards the paragraph to which you called our attention in the prospectus of the new share issue, aud which refers to the option reserved to the old shareholders to again convert their shares into £10 shares by the payment of £3 per share, we are perfectly clear that this conld only he done by statutory authority, and the only object xtx referriugto thematter inthe prospectus was to obviate the charge of breach of faith hereafter in case the £7 shares • should again beconverted into £lo shares, and rank for dividend on the larger amount."-