THE RESERVE BANK

Nelson Evening Mail, Volume LXX, 31 March 1936, Page 7

THE RESERVE BANK

PRESENT DIRECTORATE TWO RETIREMENTS THIS YEAR There is no suggestion that the directorate of the Reserve Bank of New Zealand should be changed, according to a statement recently ■ made by the Prime Minister, Mr Savage. While full details of the Reserve Bank Amendment Bill are not yet known, presumably the present shareholders’ directors will automatically become Government nominees as the State will buy out the private shareholding. The Commonwealth Bank of Australia, which is entirely a State institution, has a governor and seven other directors.

The present board of directors is as follows: —Mr L. Lefeaux, governor; Mr \y. F. L. Ward, deputy governor; Messrs -J. G. Duncan, D. A. Ewen and R. J. Hudson, State directors; Messrs E. Anderson, James Begg, Norton Francis and E. J. Herrick, shareholders’ directors; and the secretary to the Treasury (ex officio). Actually, shareholders have not voted for any directors. The appointment ot the first shareholders’ directors, together with the first State directors’ appointments, we:e made by Ordor-in-Couricil under the powers of sections 23 and 29 of the Reserve Bank Act, 1933. Under tlio Act, the term of appointment of State directors is five years, but, of the first State directors, one shall retire on 31st July, 1936, one on 31st July) 1938, and the third on 31st- July, 1940. The Act also provides a term of five years for shareholders’ directors, one retiring on 30th June each year, the first retirement taking place on 30th June, 1936. Provision’ is made for determining the retirement by ballot. There are certain qualifications required in persons lidding office on the board of directors.

The Act provides that the directors, other than the governor and the deputy governor shall be'entitled 'to receive foes and allowances for expenses as ' may ho determined by the board end .-auctioned by shareholders, provided the aggregate amount of fees does not exceed £4OOO in any year For the. year ended 31st March, 1935. the seven directors were voted the full amount, £4OOO, and were allowed a total of £666 as expenses. Tlio fees for the year ended 31st Ma>'cli, 1936, also were fixed at £4OOO.