GUARANTEES UNDER RURAL CREDITS ACT
HASTINGS, Feb. 19.
At a meeting of the Chamber of Commerce t.ho effect of provisions of the Rural Credits Act, empowering any company, notwithstanding its articles of association, to guarantee tho repayment of loans granted under tho Act or payment of interest on such loans, was considered.
Mr J. S. McLeod (president) said: “I consider it iniquitous that the Government should thus meddle with private enterprise.” Mr E. W. Hallott: “It is iniquitous bv Act of Parliament to givo a company power to enter into a guarantee which it has not power to do under its memorandum and which might possibly ruin the company. If directors are given such powers, which they have no right to have, why not givo them unlimited powers?” Mr Chambers: . “We should protest against all legislation of which this is a sample. The whole trend of present legislation is to leave tho people in the power of the departments.” Mr McLeod: “Tho present Prime Minister does not seem to favour Government interference.”
It was resolved to ask Mr Hallett to draw up a comprehensive resolution to deal with the position.
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Bibliographic details
Manawatu Times, Volume LIV, Issue 6842, 21 February 1929, Page 9
Word Count
190GUARANTEES UNDER RURAL CREDITS ACT Manawatu Times, Volume LIV, Issue 6842, 21 February 1929, Page 9
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