DIRECTORS DISAGREE

Sun (Auckland), Volume 1, Issue 88, 5 July 1927, Page 11

DIRECTORS DISAGREE

A.P.A. ASSOCIATION DISCORD ON THE BOARD 3y Cable.—Press Association.—Copyright SYDNEY, Monday. The disagreements which occurred among the directors of the Australian Provincial Assurance Association are referred to in the annual report for 1926. The report says a difference arose between the chairman, Mr. P. R. Higgins, and his co-directors relative to many matters of management and policy. This culminated in an open disagreement upon the question f a proposed scheme to merge the company with several other life insurance companies.

The resignation of Mr. Higgins followed upon an extraordinary meeting of shareholders who refused to approve of the administration of the company.

The report refers to the need for an adjustment of certain accounts on the taking over of the Life Insurance Company of Australia, and to an alleged unwarranted inflation of the company’s profits and assets through the inclusion of an assumed dividend from the Life Insurance Company, which paid no dividend.

The directors add that the amount paid for the Co-operative Insurance Company was out of all proportion to the value of the business obtained, even at the time of the purchase, while on the past year’s figures the purchase might be regarded as unsound financially^—A. and N.Z.