COMPANIES AND SHARES.

New Zealand Herald, Volume LI, Issue 15729, 2 October 1914, Page 6

COMPANIES AND SHARES.

SHAREHOLDERS' POSITION. PAYMENT OF CALLS. [BT TZLEGBATH— COBRESKIXBEST.] Wellington-, Thursday.* The position of shareholders in. liipited liability companies, in regard to the financial stress occasioned by the war, was i dealt with in a question put to-day to the ! Prime Minister by Mr. Myers (Auckland East). * * The question -was as follows: —Whether, j in view of the possibility of many people of slender means suSering great hardship through the forfeiture of shares in limited companies owing to their inability to pay the calls made . since the declaration ot war, the Government will take into' consideration the necessity of affording these, shareholders some measure of protection and make provision whereby no shares m limited companies shall be forfeited or calls sued tor during the contmaance-of the present war and for, say, sis months thereafter in the event- of the shareholders being unsble to pay the calls made by the said cotnpanlc-3 since the outbreak of the war. Mr. Myers went on to say:—"A,provision of this nature is especially desirable in the case of goldminiag companies. At : the present time a large rammer of share- j holders in' the .goldmiiriiig companies 'of the j Auckland Province are business people in a small way and many -of them now find \ themselves ia diffiealtfes because they are \ unable at the. present juncture to pay the j falls made by certain companies since the i commencement of the war." * : J

Mr. Massey, in his reply, said that Mr. Myers's suggestion, if given effect,, to, might have serious results inasmuch, as a number of mines are being developed by money raised by way of calls on shareholders. An arrangement such as suggested, he added, might probably have tie effect of closing some of them down. This would .iot be a desirable state of things to bring about v under existing circumstances. > " ; . :