THE ACTS.

Hawera & Normanby Star, Volume XXVII, Issue 2762, 3 July 1894, Page 2

THE ACTS.

The BaDk Note Issue Act Amendment Act extends tbe operation of last year's measure till 2nd September, 1895, and deletes tbe words "and the reserved profits " from the end of tbe first proviso in section 5 of the main Aot, thus permitting a proclamation to issue under the Aot , when the assets ezoeed tbe liabilities by the sum of tbe , unpaid capital. The Bank of New Zealand Share Guarantee Aot provides that the bank may inorease its capital to the extent of £2,000,000 in £10 shares of limited liability. Such shares are to have preference over ordinary shares, the liability of holders of the latter being pledged as guarantee for tbe new issue. The directors are empowered to refuse to register the transfer of ordinary shares, and no transfer, though passed by the directors, shall be valid til! authorised in writing by the president. The directors are to call up one- third (J600.000) of tbe reserve capital within 12 months from the date upon which tbey may be required to do so. Interest on amounts so called up may bs paid at the rate of 5 per cent. The new iusue is to be called on in ten years, and the dividend on it must not ezoeed 4 per cent. Id tbe event of default, these shares are to be a charge on tbe Con* solidated Revenue Fund. Tbe bank assets are to be security, and in the event of default the Colonial Treasurer may appoint a receiver, who shall have tbe powers ot a liquidator appointed by tbe Supreme Court, without the necessity of applying to the Court. Of the two millions to be raised, one shall be at tbe disposal of the bank for use in its ordinary business, and the remaining million shall be invested in such a manner as tbe Colonial Treasurer may approve. No dividend is to be paid on tbe ordinaiv shares during currency ot the preferential shares without tbe consent ot tbe Colonial Treasurer. Within three months of the issue of the guaranteed shares — (1) tb& head office of the bank must be removed to Wellington ; (2) a general meeting of shareholders shall be called at Wellington to elect a new Board of Directors, of whom the President shall be apI pointed by the GovernorinCounoil. Snob; 1 President need not be a shareholder, bsV shall exeroiee all' the duties, powers, and? responsibilities of a director; tbe qualij fioation of directors shall be tbe holding ■of 100 shares. Special auditors shall be appointed by. the Colonial Treasurer in New Zealand and tbe Agent-General in London, and if from the report of the' auditors, confirmed by' the President, it shall appear to the Colonial Treasurer; that the Bank is being improperly or unsafely audited, be shall compel amend/ meet. Tbe shares held by tbe Bank in the Bank of -Now Zealand Estates Company shall be taken at par. , , The Bank Shareholders Aot provides that the directors of any Bank may decline to register any transfer of shares npon wbioh there is any liability, to any* one of whose responsibility tbey may not bo satisfied"^ -, * ■«' > ;s;s; $- . 'h?.^, , H ,,