COMPANY AFFAIRS

Northern Advocate, 8 November 1934, Page 5

COMPANY AFFAIRS

SYDNEY COMMISSION SCHEMES TO BE DRAFTED. - ' %, '■ PROTECTING DEBENTUREHOLDERS. [United Press Associatipn—By Electric Telegraph.—Copyright.] 1 (Received. 9.-a.m.). , SYDNEY, November 7. When the Company Commission,’ under Mr Justice Halse Rogers, resumed this morning, Dr. P. Louat, for three of the companies, .referred'to the legislation passed by the State Parliament. He said it was based on the commissioner’s report, yet: seemed to go considerably further.’ Although the commissioner, Recommended certain action in- the case of three companies, the legislation dealt: with 23. The Act also took powers to deal with matters,, which had. been, expressly reserved for consideration after argument-by counsel.The commissioner said that although the Act was .wide in its powers; it was only a temporary measure The intention was id. preserve the assets of the Southern, Britishr and the." Investment Executive Trust pending further recommendations by ,him. It did not hamper him in-any- way as-far as it concerned schemes, or . • ■suggestions that, might be put forwardi ; -./

Debenture-holders must be consult-, ed, also anyone else who' could ’devise a method of saving the assets. 1 ■ . • Counsel for a large - number of de- ' intimated - ;that.- their clients desired to co-operate as'far as : possible with New Zealand, interests. \

The commissioner said he - did; not intend to propound a scheme,, fot- the ■future of the companies. Afternearing certain schemes; put forward he v might summarise . them, so > that-the J debfenture-holders would : be' able ’to consider them. He might also: make some recommendation to,-the deben-ture-holders^,.,. * ! The commissioner' suggested that

counsel should meet at a round-table conference' and work but a scheme.

This might be more useful tffarji a discussion in court. • ' ■ 1

Dr. Louat characterised, the/ suggestion as most valuable. •

In reply to counsel for' one’ of the debenture-holders, the commissioner said his- present view was ‘ that 1 * it 1 might' be : disadvantageous to deben-ture-holders ■to force the sale y ;bf ! the Trust Building (otherwise " the 1 ’ Old “Daily Telegraph” Building), by winding up ihe;companies.,- . This 'would throw thq building to the highest bidder, whereas ■ the - interests of the de-benture-holders might be better served by so,me reorganisation; of the companies.. , ■ If the rents from the building amounted to anything like / -what Mr Hewitt and other witnesses had..said, the profit would go to pay .interest. * - On the other hand, if experts, came to the conclusion that this -was; a-false f . hope, probably the debenture-holders would think; it better, to get ~ their money .back as soon as possible.

The, commissioner added that v t the parties should be prepared to put forward definite schemes by Monday week, but unless proposals were concrete they would be The sittings were adjourned until ; November 19. - ..