COMPANIES BILL.

Star (Christchurch), Volume LXVI, Issue 20540, 15 February 1935, Page 13

COMPANIES BILL.

Legislation Passes All Stages. MINIMUM OF DISCUSSION. ** Star ” Parliamentary Reporter. WELLINGTON, February 14. The Bondholders Bill providing in the main for incorporation, under the supervision of a commission, of bondholders in any bond-issuing company into a limited company in order to facilitate realisation of the products of the bonds, the Companies (Bondholders Incorporation) Bill was put through all its stages with a minimum of discussion by the House to-night. No amendments were made to the measure. Replying to questions on the second reading of the Bill Mr Coates made it clear that the Government was not accepting any responsibility for the affairs of companies affected by the legislation. It was merely providing machinery for incorporation. The appointment of a commission would be made in consultation with the companies. The point was made by Mr W. Nash (Hutt), who agreed that the Bill was necessary, that no provision was made for appeal from the findings of the commission, and he saw no reason why the proceedings of that body should be held in camera. If there was anything unjust, it was the procedure followed legally in the Dominion of fleecing sums of money from the public. Business deals should be given publicity. In one case £BO,OOO was subscribed and £43,000 went in brokerage and management. Mr Coates said it was obvious that the proceedings of the commission should be conducted in private. There was provision in the Bill for appeal to the Supreme Court on points of law. During the committee stage of the Bill Mr Savage inquired to what extent the Bill affected the M’Arthur group of companies. The Minister replied that one of the M’Arthur companies might be affected. Mr Coates said if necessary the commission could arrange for the representation of Australian bondholders. Further legislation on company matters was not contemplated this session. The recommendations of the Companies Commission would be considered by the Government, which had not yet made a final survey of the whole . report.