THE UNION BANK AND THE COMPANIES ACT.

North Otago Times, Volume XXVIII, Issue 2371, 11 December 1879, Page 2

THE UNION BANK AND THE COMPANIES ACT.

The Molbourno Ago of the 547 th ult. says : By telegraphic advices information has been today received in Melbourne to the effect that the directors of the Union Bank of Australia intend to take advantage of the Act recently passed by tho Imperi»l Legislature, and register tho bank under tho Companies Acts 18G2 to 1819, increasing the amount of the shares from L 25 to L75 each, the additional L5O per share boing intended exclusively as guarantee or "reserve" oapital. Under the intended arrangement the paid-up capital of the bank will bo L 1,500,030,, 500,030, the reserve fund paid up LBo>,ooo. tho guarantee or roserve capital L 3.000.000, in all L 3,300,000. The shareholders will thus tee the limit of their liabilities, while tho public will be guaranteed to the extent of nearly L 4,000,000, 000, 000 over and above the paid-up capital of the bank. A special meeting of the shareholders is called for 12th January next in London, to give effect to the proposals of the directors, tho tendency of which must be to do away with the deterrent influence attaching to unlimited liability, and to keep the share li^fc in a satisfactory position as to tho wealth and responsibility of the proprietors.