COMPANY LAW

Hokitika Guardian, 28 September 1928, Page 1

COMPANY LAW

\Y JN DI XG UpJpROCEDUR K. PREFER K.YC.-E (Jx SAL A R lES. "f WELLINGTON, Sept. 26. TTto Companies ;jAct Amendment Hill, introduced by, tied lion F. -1. Rolleston, Minister of Justice, is a .short' measure, which includes a clause in .substitution of, the procedure in the principal Act giving companies (lower to com.pronijkp with creditors and members. :, j»The new provision' 1 ' sets out that a compromise or arrangement approved by tliree-lourthx in value of creditors or class of creditors {voting in person or by proxy at a meeting shall be binding on all the creditors it approved by the Supreme Court. An order under these terms hats to be supplied to the Registrar of Companies, and a copy annexed to evc'ry memorandum of the company issued after the order has been made. ) The preference provisions for salaries and Wages in cases of winding up have been varied. Preference is to he given to the salary or wages of any clerk .or servant in respect of services rendered within four months ol tli© winding up, the total amount, formerly £sl), being increased to £IOO. The preference period in respect to wages of artisans, labourers or workmen lias been extended for two months to four months, and the total individual payment subject to preference is not to exceed! £SO. The provisions regarding preferential payments, are* to apply in priority to any olaiin, for principal and interest which, may be made by' debenture .holders who are secured by si. floating qharge on the company's assets;.! :i The Bill provides for a. .simplified method of transferring the shares of a. deceased shareholder without production of probate or letters of administration in cases whefe the value of the shares does not exceed £2OO. .