TRUST LEGISLATION

Poverty Bay Herald, Volume LXII, Issue 18674, 6 April 1935, Page 5

TRUST LEGISLATION

POSITION OF INVESTORS COMMITTEE’S ATTITUDE (Per Press Association.) WELLINGTON, this day. Mr Norman Levy, Wellington dis-. trict representative of the debenture holders’conmiitteo, commenting on the passing of the Companies Liquidation Bill, drew special attention to the Bt. Hon. J. G. Coates’ reference that provision is made under section 193 of the Companies Act whereby debenture holders are enabled, with the approval of the court, to take over intact the entire assets of the company in a reconstructed framework. It is the intention of the New Zealand committee to pursue this course at the earliest practical moment. In regard to the passing of the Trustee Company Protection Act, he said that it could only be deplored that the application of this Act virtually deprived them of the rights and powers which their interests in the Dunedin company conferred, and thereby a grave injustice had been dealt them. Ho did not desire to deal with the serious loss which had been caused by the worthless plea of protecting that company against the possible machinations of one individual, as that risk had been eliminated. The debenture holders wanted to exerciso the maximum rights and advantages conferred by their holding in the Dunedin company, and they were the best qualified section of those concerned to take over the control and administration of the company. He protested against the legislation being rushed through, and contended that there was a risk of saddling the Trust building in Sydney with £SOOO per annum extra State and Federal taxation which otherwise would not be applicable.