COMPANIES BILL

Southland Times, Issue 22507, 15 February 1935, Page 7

COMPANIES BILL

BOND CONVERSIONS

ALL STAGES PASSED

NO AMENDMENTS

(From Our Parliamentary Reporter.) Wellington, February 14. Providing in the main for the incorporation, under the supervision of a Commission, of bondholders in any bond issuing company into a limited company in order to facilitate the realization of the products of the bonds,, the Companies (Bondholders Incorporation) Bill was put through all its stages with a minimum of discussion by the House of Representatives to-night. No amendments were made to the measure. Replying to questions on the second reading of the Bill, Mr Coates made it clear that the Government was not accepting any responsibility for the affairs of companies affected by the legislation; it was merely providing the machinery for incorporation. The appointment of the Commission would be made in consultation with the companies. , The point was made by Mr W. Nash, who agreed the Bill was necessary, that no provision was made for an appeal from the findings of the Commission, and he saw no reason why the proceedings of that body should be held in camera. If there was anything unjust, it was the procedure, followed legally in the Dominion, of fleecing sums of money from the public; business deals should be given publicity. In one case £BO,OOO was subscribed and £43,000 went in brokerage and management. In the opinion of Mr H. G. R. Mason, the Bill would not do much to prevent company swindles; much more than, provisions and measures were required to protect the small investors. Mr Coates said it was obvious the proceedings of the Commission should be conducted in private. There -was provision in the Bill for an. appeal to the Supreme Court on a point of law. During the committee stage of the Bill Mr M. J. Savage inquired to what extent the Bill affected the McArthur group of companies. The Minister replied that one of the McArthur companies might be affected. Mr Coates said that if necessary the Commission could arrange for the representation of Australian bondholders. Further legislation on company matters was not contemplated this session. The recommendations of the Companies’ Commission would be considered by the Government which had not yet made a final survey of the whole report.