AMENDMENT BILL WILL ALTER CERTAIN CLAUSES IN COMPANIES ACT.

Star (Christchurch), Issue 18577, 27 September 1928, Page 16

AMENDMENT BILL WILL ALTER CERTAIN CLAUSES IN COMPANIES ACT.

(Special to the “ Star. ) WELLINGTON, September 26. The Companies Act Amendment Bill, introduced by the Hon F. J. Rolleston, Minister of Justice, is a short measure, which includes a clause in substitution of the procedure in the principal Act, giving companies power to compromise with creditors and members. The new provision sets out. that a compromise or arrangement approved by three-fourths in value of creditors or class of creditors voting in person or by proxy at a meeting shall be binding on all the creditors if approved by the Supreme Court. An order under these terms has to be supplied to the Registrar of Companies, and a copy

annexed to every memorandum of the company issued after the order has been made. The preference provisions for salaries and wages in cases of winding tip have been varied. Preference is to be given to the salary or wages of any clerk or servant in respect of services rendered within four months of the winding up, the total amount, formerly £SO, being increased to £IOO. The preference period in respect to wages of artisans, laboureis or workmen has been extended from twe months to four months, and the total individual payment subject to preference is not to exceed £SO. The provisions regarding preferential paj'ments are to apply in priority to any claim for principal and interest which may be made by debenture holders who are secured by a floating charge on the company’s assets. The Bill provides for a simplified method of transferring the shares of a deceased shareholder without production of probate or letters of administration in cases where the value of the shares does not exceed £2OO.