RESERVE BANK BILL

Timaru Herald, Volume CXXXVII, Issue 19626, 21 October 1933, Page 3

RESERVE BANK BILL

AMENDED PROVISIONS. By Telegraph—Press Association WELLINGTON. October 20. A new provision of the Reserve Bank Bill w’hich was read a first time in the House of Representatives yesterday, states that any banknote, whether issued by the reserve bank or any other bank, that is not presented for payment within 40 years from the first day of April following the date of its issue in the case of a banknote issued by the reserve bank, or in the case of any other banknote within 40 years after assumption by the reserve bank of liability for it, shall on the expiration of that period be deemed not to be in circulation, and an amount equal to its value shall be paid by the reserve bank into the credit of the Consolidated Fund. In the event of the governor and deputy-governor both being prevented from carrying out their duties, the Bill provides that an officer of the bank or one of the other members of the bank may be appointed to act as governor for the time being. Finally, an amendment to the schedule of the Bill declares that five members of the board, including either the governor or deputy-governor, shall form a quorum for meetings. The Bill sets out that the first governor and deputy-governor are to be appointed by Governor-General-in-Council for a term of seven years. Thereafter these officers are to be elected at a general meetir., of shareholders for a term of seven years, but the election must be approved by the G-overnor-General-in-Council. Of the directors first appointed by Govemor-General-in-Council, one shal' retire on July 31, 1936, one on July 31. 1938, and the third on July 31, 1940. The member to retire in any year is to be determined by the board by ballot, but members will retire in rotation. Subsequently all the directors appointed by the Govemor-General-in-Council are to hold office for five years. No person who is not a shareholder can be elected as a shareholders' director. The first shareholders’ directors shall be appointed by the Governor-General-in-Council, and one will retire on June 30 in each year, starting from 1936. As each director retires a new director shall be elected for a period of five years by the shareholders at a general meeting. Not more than one member of the board shall at any time be a director of any other bank carrying on business in New Zealand or elsewhere. Every member of the board is eligible for re-appointment or re-election upon retirement. The original Bi provided that the aggregate amount of the fees to be paid to the directors other than the governor and deputy-governor should not exceed £ISOO in any year. The new Bill increases the amount to £4OOO. The salaries and allowances paid to the governor and deputygovernor are now to be fixed by the Governor-General-in-Council. The amount of salary or allowance paid to each of these officers shall not be computed by reference to the earnings of the bank, nor shall either be remunerated wholly or partly by any form of commission. As was provided in the first Bill, the original capital of the bank shall be £500,000, in shares of £5 each, which shall be offered by the Minister of Finance at par for public subscription in New Zealand.