COMPANIES BILL.

Star (Christchurch), Volume LXIV, Issue 939, 8 December 1933, Page 12

COMPANIES BILL.

Amendments Wanted by Chamber. SCRIP NOT ISSUED. The non-issue of scrip by certain companies which have New Zealand shareholders is a matter which has been taken up by the Canterbury Chamber of Commerce. At a meeting held last evening the secretary reported that following the discussion on the Companies Bill at the previous meeting of the council he had written to the Associated Chambers as follows: — “This chamber’s Parliamentary Bills Committee has had under consideration the non-issue of scrip by certain companies which have New Zealand shareholders. There are certain companies whose shares are bought and sold on New Zealand Stock Exchanges, but which do not trade in New Zealand. It is realised that we can have no jurisdiction over these companies. There are, however, other companies, referred to as foreign companies, under part 12 of the Bill, which have to register their Memorandum of Association in New Zealand, and deposit powers of attorney at the Supreme Courts in the districts where they operate. “Provision is now made in section 79 of the Bill making it compulsory for New Zealand companies to issue scrip to shareholders and it appears to our committee that these provisions should be made to apply to foreign companies trading in New Zealand. These companies are registered under the Companies Act and it appears reasonable that they should be made to comply with the same conditions in this regard as New Zealand companies. It is admitted that very many foreign companies have no New Zealand shareholders. Under these circumstances such a provision in the Companies Act would be no hardship. On the other hand, at any time an overseas company may have shareholders in New’ Zealand and in such a case it should be under an obligation to issue scrip to New Zealand shareholders. Articles of Association.

“The committee has also considered the proposals under the Companies Bill that articles of association should be registered in the case of private companies. The committee considers that the information contained in the articles of association, being as it is the substance of an arrangement amongst the shareholders, should not in the case of private companies be made public, and that, as many of the provisions in the articles are private agreements between individual shareholders, private companies should not be obliged to register articles of association. “I am directed to if, after conferring with the Associated Chambers’ representative on the special committee responsible for the Bill, suitable action can be taken to bring these aspects of the Companies Act to the notice of the special Parliamentary Committee which will have the Bill under consideration.” A reply was received from the secretary of the Associated Chambers advising that the matter was receiving attention. Freights Committee. The report of the Freights Committee was preseted by Mr Turner. The report stated that information regarding irksome export certificate requirements had been received from various exporting firms and this information had been embodied in a letter to the Minister of Industries and Commerce, a copy of which had also been sent to the Prime Minister. Regarding the question of freights, the committee had met and considered what further steps could be taken to secure some reduction. A reduction of 5 per cent had been granted to New Zealand freezing companies on general cargo exported: this was considered by the committee to be inadequate. The committee had, therefore, taken the following steps in an endeavour to secure a reduction of freights generally: Arrangements had been made for Sir James Par r to be interviewed before he left New Zealand so that he could be fully informed of the position when in his position as High Commissioner in London, he represented the Dominion on the Imperial Shipping Committee. A case was also being prepared in connection with import freights which would be submitted to the Federation of British Industries and a copy of this information would also be sent forward to the Australian New Zealand section of the London Chamber of Commerce. The committee was continuing its activities and would report progress to the council from time to time. The report was adopted.