TO THE EDITOR.

Otago Daily Times, Issue 10306, 13 March 1895, Page 3

TO THE EDITOR.

Sik,—ln my last letter I pointed out the additional information required by this act to be included in " The Statement of Affairs of the Company," and the clause prohibiting sharebrokers acting aa mine secretaries or m&nagsrs. I will now point out » few other clauses in tho act of general intorost. Clause 12 gives power to the shareholders to make rules, or adopt as rules the whole or any of tho articles containßd in the third schedule, and they may modify them as thfy think fit, bub so as not to be inconsistent with the aot.

Clause 30 provides that on June 30 and December 31 in each year the manager or secretary must make a statement of all claims in arrears, &c, and shall within 30 days send a copy of the same to each shareholder. This is a good provision, and it 13 to bo hoped the Mining department will sco it carried out, as many solvent shareholders in companies have been in the pass mulcted for much more money as contributovies of companies which h.ivo gone into liquidation than was fair and equitable.

Clause 32 provides that directors must see that half-yearly " statements of affairs " ars furnished to shareholders seven days before the days of the half-year] v meetings, and t, copy of the same, with statutory declaration, has to be left with the registrar of the Supreme Court. Clause 35 directs that yearly statements of affairs must ba published in tho Gazette in the form of the fourth schedule, and copies forwarded to the shareholders, and this applies to all companies, no matter what act they are registered under.

P&it IV deals with no liability companies, and, excepting the clauses dealing with forfeiture, the provisions of tbe act are applicable to companies registered under this part.

Sub-section 5, cUuso 130, provides that chares in "no liability companies" upon which calls are not paid at the expiration of It days are absolutely forfeited. Part VI of the act deals with, offences and penalties for breaches of the act, and appears to be very stringent.

Taking the act as a whole it is altogether too lengthy, and if a lawyer conversant with mining had been employed to draft the act ho could easily have reduced its sizn at least onethird, and made it more easily to be understood, and quite as effective.

This act repeals the act of 1886 and the amendments of 1890 and 1892, and as it consolidates all previous le^isktion ou this difficult question it is ia this respect satisfactory.— I am &c,

March 9.

M. J. Pauvo,