IN AUSTRALIAN CURRENCY

Taranaki Daily News, 18 February 1931, Page 6

IN AUSTRALIAN CURRENCY

PAYMENT OF BANK DIVIDEND, OPINIONS ON LEGAL ASPECT. By Telegraph.— Association. Wellington; Last Night. In connection with the cablegram addressed by the Christchurch Stock Exchange ; to the president of the Batik of New South Wales, the resident inspector in New Zealand has received the following cablegram from hip general manager: "Regarding protest payment dividends in Australian currency, rules of law governing payment of divi- . dends and repayments of deposit® arc entirely different. Deposits are received in legal tender and cafi only be repaid in legal tendei- of the country in which deposits are held. Questions of currencies of other countries and external rates of exchange therefore do not Effect either receipt or interest on deposits or payment- of deposits. Rules of law with regard to payment of dividends to shareholders are entirely different. A shareholder knowingly bu\’s interest in capital of company, ite knows where its main business is conducted and wjiere its are situated. The general rule of law affecting dividends is tfiat no one shareholder is entitled to receive from the company per unit , of his holding any more than any other shareholder. This rule governs the position unless any special provision appbanj in the cprii/ pany’s constitution. Owing to marked variations from par of Aqstrallan aini New Zealand rates of exchange oil London and each other it .vas impossible ’, lodger to disregard the exchange pbfiL tion and continqe to pay. dividends oii a par basis, as formerly. The bank' therefore took counsel’s opinion, both in London and Australia, and hold independent opinions of five learned counsel that the bank is under obllgiiion to pay the dividend in 'Australian Ciir- ? repey.