Two Directors Retire

Manawatu Times, Volume 63, Issue 179, 1 August 1938, Page 8

Two Directors Retire

CONDUCT OF THE RESERVE BANK STATUTORY BALLOT Per Press Association. WELLINGTON, July 30. As a result of the retirement of two directors of the Reserve Bank of New Zealand by ballot yesterday, the membership of the board, exclusive of the Governor, the Deputy-Governor and the Secretary of the Treasury, has now been reduced from seven to four. The names of tho two members of the board who retired yesterday have not been officially announced. Tho retirement of the two directors was carried out in accordance with Statute at an ordinary meeting of the directorate. The low strength of the board is due to the fact that one member who retired in similar fashion last year, and whose retirement has not yet been officially announced, has not been replaced. When the bank was first constitutes in 1933, its direction was placed in the hands of a board consisting of the Governor, the Deputy-Governor ana! seven directors, three of whom representing the State and four representing the shareholders. Mr Leslie Lefeaux was appointed Governor and Mr W. Li Ward Deputy-Governor, and both oJ them still hold office. Original Directorate The original directorate comprised Mi Norton Francis, Mr James Begg, Mt D. A, Ewen, Mr E. J. Herrick, Mr E. A Anderson, Mr R. Hudson and Mr lan Duncan. All these members were appointed by the Coalition Government, as it was provided in the original legislation that one shareholders’ director should retire annually by ballot, commencing on June 30, 1936, and that thereafter a director should be elected annually by the shareholders. Practically the first legislative step taken by the Labour Government in 1936 was the amendment of the Reserve Bank of New Zealand Act and, in addition to widening the powers of the bank very substantially, the amending Bill provided for the reconstitution of the board cf directors. Private share capital in the bank was abolished and the distinction between State directors and shareholders’ directors disappeared. The original directors continued in office but provision was made for annual retirements up to 1940, the members retiring in any year to be determined by ballot. In the first year of the new regime, the two original directors who lost their seats on the board were Mr Norton, Francis and Mr James Begg. They were 1 replaced by Mr Mark Silverstone ana l Mr George I .awn, who were appointed by the Governor-General-in-Council. year one member was due to retire and the choice fell on Mr D. A. Eweu,' However, Mr Eden’s retirement, which took place a year ago, has not yet been officially announced, and the vacancy created has not yet been filled. This position is governed by a clause in the amending Act which states. that the powers of the board need not be affected by any vacancy in its membership. Annual Ballots, It is also made clear in the amending legislation that only those members who were originally on the board take their place in the annual ballots to determine which of them will retire. Mr Silverstone and Mr Lawn, the only members so far appointed by the present Government, do not have to run the annual gauntlet for their seats on the board, but even then they will not be able to continue in office for longer than five years without reappointment. As a result of the two retirements yesterday, only two of the original directors remain on the board. There will be a further ballot before July 31 next year, to determine the retirement of one of them and the sole survivor will retire on July 31, 1940. Under the original legislation the Secretary of the Treasury was made an ex-officio member of the board without voting powers, but these powers were given to him by the Labour Government’s amendment.