COMPANY PROMOTION

New Zealand Herald, Volume LXXI, Issue 21983, 14 December 1934, Page 16

COMPANY PROMOTION

COMMISSION'S REPORT SUGGESTED AMENDMENTS The final report of the Companies Promotion Commission was discussed by the Auckland Chamber of Commerce Council yesterday and suggestions for certain amendments were made. A sub-committee expressed doubts whether the Corporate Investments Bureau could function as cheaply as the commission claimed. It also suggested that, if every disclosure of directors' interests under section 155 of the Companies Act were required to be reported to the bureau, as was recommended by the commission, there would be congestion of work without commensurate advantage to the public. Another suggestion was that the activities of the bureau should be limited and directed chiefly to the flotations of new companies, rather than to a harassing and unnecessary supervision of existing firms. It was also questioned whether the functions should include inquiry into the practicability of new issues, as well as their honesty. "After all, we cannot protect every fool from his folly," said the president, Mr. A. G. Lunn. "We should like to see adequate safeguards against frauds but the spirit of enterprise should not be stifled. 1 ' Mr. J. A. C. Allum said there was no doubt the public had been frightened from investment by certain recent developments, and he was sure there was no suggestion that the council was in any way resisting the suggestions of the commission for the safeguarding of tho investor. A way would doubtless be found of avoiding unnecessary restrictions while retaining adequate safeguards. Mr. W. R. Fee suggested there should be provision in the Act for regulating the nominal capital of private companies. He said that at present tho actual capital of a private company might be only a fourth of the share capital shown. It was decided to submit suggestions to the Associated Chambers for representations to be made to the Government