Safeguarding Trust Assets

Manawatu Times, Volume 59, Issue 274, 22 November 1934, Page 5

Safeguarding Trust Assets

PLAN EOR DEBENTURE-HOLDERS,

United Press Association.—By Electric Telegraph.—Copyright. SYDNEY, Nov. 20.

Mr. L. AY. Swan, secretary of the New Zealand debenture-holders’ eommitce, states that the scheme presented to the Royal Commission yesterday on his behalf by Mr. Pitt is entirely subject to the consent of debentureholders who will be given an opportunity, subject to tho Commissioner’s approval, of adopting or rejecting the proposals. His committee represents £174,000 in value of Investment Executive Trust debentures.

The proposals were based on the debenture-holders remaining in their present position as debenture-holders, but with alterations in the articles of the companies to provide for control by a board consisting of six representatives of the debenture-holders to one shareholders’ nominee. The three main companies—the Investment Executive Trust, the Southern British Trust and the British National Trust —should remain in existence, the other companies giving power of attorney with power to liquidate such companies. The proposals would remain in effect for 12 months,, when the debentureholders would have the opportunity of expressing an opinion whether the companies should be wound up or otherwise.