COMPANY LIQUIDATION

Taranaki Daily News, 17 April 1935, Page 7

COMPANY LIQUIDATION

PROCLAMATION ISSUED RECENT ACT TO TAKE EFFECT. THIRTEEN COMPANIES AFFECTED. CO-OPERATION WITH AUSTRALIA. By Telegraph—Press Association. Wellington, Last Night. The Governor-General, Lord Galway, to-day signed a proclamation in the terms • of which the Companies Special Liquidation Act, passed last comes into operation to-day. The proclamation is published in a special Gazette issue. In answer to an inquiry to-day the Hon. Adam Hamilton, Acting-Minister of Finance, stated that section 1 of the Companies (Special Liquidations) Act provided that the Act should come into operation on a date to be specified by , the Governor-General by proclamation to be published in. the Gazette, but that no such proclamation should be issued until the New South Wales legislation had come into operation. The Minister added that telegraphic advice had been received from the Prime Minister of New South Wales to the effect that the Companies (Liquidation) Bill there had been passed and assented to last week. The Companies (Special Liquidations) xßill provides for the winding-up of the following 13: companies incorporated in New Zealand: — . Investment Executive Trust of N.Z. Ltd. , -' . Sterling Investments Co. of N.Z. Ltd. Investment Securities Association Ltd. British National. Investment Trust Ltd. New Zealand Shareholders’ Trust Ltd. , Pacific Exploration Co. Ltd,’ Farms and Farmlets Ltd. Transport Mutual and General Insurance Co. Ltd. A V. B. Mclnnes and Co. Ltd. , Alcorn, Trower and Co. Ltd/ Auckland Provincial and Town Pro- " perties Ltd. New Zealand Freeholds and Buildings Ltd. ' " . Freeholds Ltd. POWERS OF RECEIVER. The winding-up shall commence from the date on which the Bill becomes effective. The Bill appoints the Public Trustee liquidatorof the companies, and hisi appointment as receiver under the Companies (Temporary Receivership) Act, 1934, shall be deemed to be determined as from the-commencement of the winding-up. In addition to other powers, the Public • Trustee is vested with the following functions: .(1) To appoint servants, clerks, managers and agents on such terms and conditions as he thinks fit; (2) to consult and employ counsel, accountants, sharebrokers and other persons; (3) to postpone the realisation of any asset of any of the companies for such a period as he. thinks fit. Such additional powers, however, are subject to the control of the court, and any creditor or contributory may apply to the. court with respect to any exercise or. proposed exercise of any of those powers.- • Where the Public Trustee commences any action or other legal proceeding by any company of which he is liquidator dr . receiver against any . other such company, or against himself acting in any capacity (whether as liquidator or receiver of any company or otherwise), or by himself acting in any capacity against any such company, he shall obtain the directions of the court as to how opposing interests are to be represented. The expenses of winding-up a company shall be payable out of the assets of the company concerned, including the assets securing debentures issued by the company in priority to all other claims, except any claims of the Public Trustee ‘ for costs, charges and expenses. + DEFRAYING EXPENSES. ’ - .V? • . Pending the distribution of the proceeds of the sale of , the trust building, the liquidator of the Investment Execu-' live Trust of New Zealand shall from time to time pay out of the assets of that company to the Public Trustee of*New Sobth Wales, as and when required by him to do so, the company’s proportionate share of any moneys, required by the New South Wales Public Trustee to enable him to defray expenses incurred in respect of the trust building. The share to which the Investment Executive Trust may be .entitled under the New South Wales, legislation in the proceeds of the sale, of the trust building and any other property, and in any rents and profits of' such building and property, shall be received by the liquidator of the company in reduction of the amount owing to the company under the debentures of the British National Trust, . Ltd., held by the Investment Executive Trust. The share of. the Investment Executive Trust :in the proceeds of rents and profits shall be applied by the liquidator as assets of the company securing the debentures issued. For the purpose of winding-up all debentures issued by the company. shall be deemed to be of one class and to rank pari passu, and every charge over the property in favour of any class of debenture-holders shall be deemed to be a charge in favour. of all. In the winding-up of any companies the claims of the directors and officers in whatever capacity shall rank after all other claims.’