INTERIM REPORTS

Otago Daily Times, Issue 23882, 9 August 1939, Page 16

INTERIM REPORTS

COMPANY OPERATIONS STOCK EXCHANGE PROPOSAL ASSISTING SHAREHOLDERS The proposal made at the recent conference in Sydney of the Australian Associated Stock Exchanges that the directors of companies should acquaint shareholders more than once a year with the trend of the company's affairs, especially the financial results, is commented on in the latest issue of the Australasian Insurance and Banking Record. "It was recognised by the conference, the journal states, that halfyearly reports and balance sheets would not be practicable in many cases, but it was thought that it should not be difficult for the company to indicate its progress. With the great improvement in acounting systems in recent years, it should be possible for the directors of any public company to be able to say how the results for any given period of three or six months compare with those for the parallel period of preceding years. "The statement need not necessarily be in detail," the journal continues. "The shareholders would doubtless be satisfied with a broad outline prepared by the board, so long as it was in such a form as to give a true picture of the company's affairs. Of course, there is the objection that it would not be fair to companies engaged in any particular class of industry if they gave advance information and their competitors did not. But no reform worth introducing was ever achieved without surmounting hurdles, and the one under discussion is well worthy of adoption. "" The matter is really in the hands of shareholders as owners of the businesses," it adds. "It will be interesting to observe whether any recommendations along the line suggested are put forward at forthcoming annual meetings."