The Bank Bill.

Opunake Times, Volume I, Issue 2, 6 July 1894, Page 2

The Bank Bill.

Fuller Details. The following is a summary of the bill which was passed through Parliament on Saturday morning:— BANK OF NEW ZEALAND SHARE GUARANTEE BrLL. The Bank of New Zealand Share Guarantee Bill is to guarantee, out of the Consolidated Fund, a special issue . of shares by the Bank of New Zealand to the amount of two million pounds sterling. Clause 3 permits the 3irectors of the bank to increase the capital of the bank by the issue of shares to an amount not exceeding two million pounds, in shares" of ten pounds each, upon which there shall be no-further liability. Clause 4 provides: " Such gnaranteed shares shall be called •A' shares, and shall have preference over all ordinary shares in respect both of capital and dividend; and the liability of-holders of the ordinary shares, under section twenty-one of ' The New Zealand Bank Act, 1861,' shall . be available to secure the calling in, payment, and cancellation, as hereinafter provided, of such guaranteed snares and dividends thereon, and the directors of the "bank may decline to register any transfer of share 3 upon which there" is any liability made by shareholders, to any persons of whose responsibility they may not be satisfied, and every transfer of shares, after being approved by the directors shall not be valid until authorised in writing by the president. Clause 5 empowers the directors to call up one-third of ten pounds per share for which shareholders are liable under section 21 of the Act of 1861, and collect the same within twelve months from the'date at which the guarantee comes into effect. The interest on calls is not to exceed five per cent. Clause 6 says that the bank shall at the expiration of ten years from date of issue of' A' shares call in and cancel the same on payment of the nominal value of the same with accrued dividend. Clause 7 provides the dividend on «A' shares is not to exceed four per cent. Clause 8 reads: 'Every sum of money for which ' A ' shares shall be issued under the authority of this Act and dividends thereon shall be a charge upon, and in the event of default in respect thereof by the bank shall be payable out of the Consoli- | dated Fund of New Zealand without further appropriation than the authority of this Act." - .; Clause 9 provides that in the event of default the Colonial Treasurer may appoint a Receiver. > -i Clause 10 says that of the two mil- M lions so raised one million pounds shall be at the disposal of the bank for use in its ordinary business, and the remaining million shall be invested in " 1 in such a manner as the Colonial Treasurer may approve. s Clause 11 provides that duriug the currency of the shares no dividend is :;=,* to be paid without the consent of the Treasurer. >. Clause 12 provides that within v : months of issue of guaranteed shares ;* (1) The head office of the bank shall ; be removed to Wellington. (2) A general meeting of shareholders shall . be called to meet in Wellington to. elect a new board of directors, of whom the president shall be appointed by - the Qovernor-in-Council. Such president need not be a shareholder in the bank, but shall have and shall exercise all the duties, powers, and, *£l responsibilities of -a -direcftJr. The qualifications of directors shall be the holding of one hundred either of "A " shares, or of other shares of the bank, or partly, of one class and partly of the - other class. 1 Clause 13 provides that a special 1 officer shall be appointed as auditor in A the Australian Colonies, and the Agent-General in London shall appoint an officer in respect of the business of the Bank in the United / Kingdom. '' ' Clause 14 contains regulations as to audit. Clause 15 says that if, upon the rereport of the auditors, confirmed by ' the president, it appears to the Colo- % nial Treasurer that the affairs' of the . bank are in any respect improperly or. unsafely conducted, he shall call the attention of the directors thereto, and it shall be imperative oh the directors to amend the management and conduct of the business in such a manner as the Colonial Treasurer may, by any writing, require. M Clause 16 says that in valuing the [% shares held by the bank in the bank j<M of New Zealand Estates Company, Limited, or any items which shall take the place of such shares, or any of them, the directors and auditors shall treat the same as an account in liquidation, and pending the completion of such liquidation, such shares or items shall be taken at par o? book value thereof. Clause 18 amends the'deed of sattlement of the Bank, so as to ma'ce i t conform to the provisions of the Act. • *_' "'