MINING PROMOTERS.

Lake County Press, Issue 976, 22 August 1901, Page 7

MINING PROMOTERS.

LEGISLATION CONCERNING DIRECTORS. THE COMPANIES BILL. [From the Dunedin Evexi.no Star.] WELLINGTON, August 16. In view of recent disclosures in connection with mining and dredging companies, the amendments recommended by the Statutes Revision Committee of the Legislative Council in the Companies Act Amendment Bill should bo of interest. These, in the first place, take the form of restrictions on directors, making the payment iu cash of the application and allotment money a precedent condition of their appointment, making it obligatory on them to pay their calls on or before the day when shareholders calls are due, and, where directors fail to do so, protecting shareholders from forfeiture or court judgment for non-payment of calls. Secondly, mining companies are brought within the operation of the Bill and of the Companies Act of 1900. Clause 3 (conclusiveness of certificate of incorporation), commanding the production to the registrar of a statutory declaration by the solicitor engaged in the formation of the company, is amended by adding that the declaration shall also bo made by the directors (if any) and the subscribers to the memorandum of associtation. Clause 4 provides that no person shall be appointed or advertised as a director unless he has signed for a number of shares not less than that required for his qualification To this is added a proviso that such person must also have “ paid in cash the application and allotment money ” on his shares, but the clause shall not apply to a prospectus issued by a company after three years from the date at which it was titled to commence business, under allotment ” an amendment is made that tue amount payable on application on each share shall not be less than 10 (instead of 5) per cent, on the nominal share value. The third sub-clause of clause 10, declaring that the clause shall not affect the power of any company to pay such brokerage as it has been heretofore lawful for a company to pay, is struck outAn important new clause under the heading “Payment of Calls” provides that i shall be obligatory on the directors t<> pay any call on shares held by them on or before the day on which such calls are made payable by shareholders ; that every director who fails to do so shall be liable to a penalty (maximum £SO, minimum £5), m addition to his liability for the amount of the call; that, notwithstanding the Mining Companies Act, 1894, no shares othei than directors’ shares shall be liable to forfeiture under that Act for non-payment of calls, and no judgment for unpaid calls shall be obtainable against any shareholder unless the directors have paid their calls as stipulated. Clauses are added dealing with mortgages. With regard to the winding up of companies, the original clause dealing with the powers of deputy and of acting assignees is struck out, and a new clause is inserted to provide that “ on the application of the official liquidator the Court may, iu the course of the winding up of a company, appoint the deputy assignee or other fit person to act in lieu of the official liquidator, with all his powers and functions. Sections 86 to 94 of the Mining Companies Act, 1894, are added to the clauses to be repealed. Hitherto the Mining Companies Act of 1894 has only provided that a mining company shall show on the debit side of its statement of affairs “ the amount of the contingent liability of the company (if any).” The Committee have repaired this manifest omission by adding a clause that the statement of affairs shall also show “ the amount of debts owing to the company.” A final clause is added providing that the Companies Act Amendment Bill of 1900 and this Bill shall apply to all companies whether registered under the principal Companies Act or under the Mining Companies Act of 1894. »