“INTERESTED PARTIES” UST STAND DOWN

Manawatu Times, Volume XLIX, Issue 3249, 20 January 1926, Page 7

“INTERESTED PARTIES” UST STAND DOWN

Dannevirke Power Board “Tagged” LOSES SERVICES OF VALUABLE MEMBERS [Per Pres* Association.] DANNEVIRKE. Last Night. The last balance sheet of the Dannevirke Power Board contained a tag that "In the opinion of the audit office .the transactions between the Board and C. L. Nellsen and Co. Ltd. disqualifying R. 9. Chadwick and 3. W. Elllngham, shareholders of the latter, from acting as members of the former.” The Board Informed the Audit office, that In May last It took steps to satisfy Itself it was on safe grounds by writing to Mr T. F. Martin, counsel to the Electric Power Board Association of New Zealand, clearly pointing out to him that Messrs Chadwick and Elllngham are only concerned In the business of 0. L. Nellsen and Company Ltd. by virtue of the fact that they, on the death Of a, shareholder, became the trustees of the estate. They are not beneficiaries under the will. Mr Martin replied that In his opinion a member of the Board was not disqualified by reason of the fact that there was a contract between the Board and the Incorporated company consisting Of less than twenty members, in which company he Is a shareholder, but ao trustee only, assuming that he was not one of the beneficiaries under the trust. This opinion was forwarded to the Auditor-General, who replied that the Audit office, supported by Its legal advisers, was unable to concur. The Auditor-General stated: “Mr Martin’s opinion of course, relieves the Audit, Department of any obligation to take action In respect of the position up to date, but this condition cannot be maintained." The matter was considered at the Board's meeting to-'day, when regret was expressed at the loss of two valued members. Mr A. E. Ransom, M.P., chairman, moved that the Board write to the Audit Department asking for lt» guidance In the matter of a Supreme Court test case, nut the motion was defeated by flyeXto three, members holding that the ratepayers should not be involved in a legal action. It was finally decided that the Board’s action in the matter he held over until a further opinion was received, from Mr Martin.