THE PROVISIONS OF THE BILLS.

Otago Witness, Issue 2106, 5 July 1894, Page 20

THE PROVISIONS OF THE BILLS.

Wellington, June 29.

When the House resumed at 7.30 to-night an adjournment was taken for an hour to await a message from the Governor in regard to three bank bills of great importance which the Colonial Treasurer had announced earlier in the day he intended to introduce and pass through all stages at one sitting. la the meantime the bills were circulated. They are as follows : —

The Bank Note Issue Act Amendment Bill provides that the provisions of part II of the Bank Note Issue Act of last year shall remain in force until the 2nd September 1895 ; repeals the words "and the reserved profits" at the end of the first proviso of section 5 of the act.

The Bank Shareholders Bill is an act to control the transfer of bank shares. It consists of two clauses, the second of which provides that, notwithstanding anything contained in any act dealing with any bank or any deed of settlement of any bank, the directors of any bank may decline to register any transfer of shares upon which there is any liability made by a shareholder to any person of whose responsibility they may not be satisfied.

The Bank of New Zealand Share Guarantee Bill is to guarantee oub of the consolidated fund a special issue of shares by the Bank of New Zealand to the amount of £2,000,000 sterling. Clause 3 permits the directors 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 £10 each, upon which there shall be no further liability.

Clause 4 reads: — "Such guaranteed shares shall be called A shares, and shall have preference over all ordinary shares in respect both of capital and dividend. The liability of holders of ordinary shares under section 21 of 4 The New Zealand Ban* Act 1861 ' shall be available to secure the calling in, payment, and cancellation, as hereinafter provided, of such guaranteed shares and dividends thereon, and the directors of the bank may decline to register any transfer of shares upon which there is any liability made by shareholders to any person 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 the £10 per share for which shareholders are liable under section 21 of the act of 1861, and collect the same within 12 months from the date at which the guarantee comes into effect; interest on calls -not to exceed 5 per cent.

Clause 6 says that the bank shall, at the expiration of 10 years from the date of issue of A shares, call in and cancel the same on payment of the nominal value of the same with accrued dividends.

'Under clause 7 the dividend on A shares is not to exceed 4- per cent.

Clause 8 reads : " Every sum of money for which A shares shall be issued under authority of this act, and the 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 consolidated fund of New Zealand without f u'ther appropriation than the authority of this act."

Clause 9 provides that in the event of default the Colonial Treasurer may appoint a receiver.

Clause 10 says that of the two million so raised one million pounds shall be at the disposal of the bank for use in its ordinary business, and the remaining one million pounds shall be invested in such manner as the Colonial Treasurer may approve.

Clause 11 provides that during the currency of shares no dividend is to be paid without the consent of the Premier. Clause 12 provides that within three months

of the issue of the guaranteed shares the head office of the bank shall be removed to Wellington. (2) A general meeting of shareholders shall be called to meet iv Wellington to elect a new board of directors, of whom the president shall be appointed by the Governor-in-Council. Such president need not be a shareholder in the bank, but shall have and shall exercise all the duties, powers, and responsibilities of a director. The qualification of directors shall be the holding of 100 either of A shares or of other shares of the bank, or .partly of one class and partly of the other class. Under clause 13, the special officer shall be appointed as auditor in the Australasian colonies, and the Agent-general of New Zealand 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 Bays that " if upon the report of the auditors, confirmed by the president, it appears to the Colonial Treasurer that the affairs of that bank are in any respect improperly or unsafely conducted, he shall call the attention of the directors thereto, and it shall be imperative upon the directors to amend the management and conduct of business in such manner as the Colonial Treasurer may by any writing require." Clause 16 says : — •• In valuing shares held by the bank in the Bank 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 shareß or items shall be taken at par or -book value thereof."

Clause 17 amends the deed of settlement of the bank so as to make it conform to the provisions of the act.