THE HAWKING OF SHARES

Taranaki Daily News, 5 September 1930, Page 9

THE HAWKING OF SHARES

SPECULATIVE ISSUES

PROTECTION FOR INVESTORS

AMENDMENT TO COMPANIES ACT.

MEMBERS’ BILL INTRODUCED.

(By Wire —Parliamentary Reporter.) Wellington, Last Night. A Bill to amend the Companies Acte was introduced in the House of Representatives to-day by Mr. W. E. Barxiard (Napier), who said it contained a small amendment to meet an evil which had existed for some time- and which threatened to attain Considerable proportions, the practice of share hawking. Most people had seeii something of the methods of persons’ who went through the country endeavouring to dispose of forestry, flax and tobacco ehares and bonds. In many cases such ventures were of a highly speculative nature, tb ptit it mildly. Experience showed that hundreds of thousands of comparatively poor people were induced by glibtongued salesmen to invent their hardearned savings in such veiiiilres. . The evil had existed also in Gteat Britain, and the necessity for providing some remedy was recognised some years ago. The amendment would be based on ■Section 35(1 of the hew British Companies Act. It forbUde Any person, going from house to house Offering shares to the public for subscription or purchase. In the second place, when any shares were offered tb the public a sharebroker Or hawker was required te submit a statement containing various requirements set forth in the section Of the Act. Che Of the essential things required was a statement whether . permission had been obtained from; the Stock Exchange to deal in the shkres.