COMPANY LAW.

Star (Christchurch), Volume LXVI, Issue 20648, 24 June 1935, Page 9

COMPANY LAW.

Contemplated Revision of Act. ACCOUNTANTS ATTENTIVE. (Special to the “ Star.’’) WELLINGTON, June 21. Keen • attention is - being given by branches of the New Zealand Society of Accountants to the report of the Commission of Inquiry into companypromotion methodsr On this subject a paper (which was very highly praised) was submitted by' Mr R. A. Glen (Wellington) to the Accountants’ Convention at Auckland in February. Since then the paper has been published and circulated among all members of the society, and meetings of branches are being held to consider the Commission’s report. Eventually the branches will forward their opinions to the society’s council, which will present the society’s views to the Government. At a special meeting of the Wellington branch on Thursday evening Mr S. E. Lambert (who presided in the unavoidable absence of Mr C. Worth, chairman of the branch) said frhat it was the obvious duty of the accountancy profession to study the Commission’s report very carefully, as the public naturally would' expect the profession to give a helpful lead to the Government in anj' revision of the'Companies Act. Panic Legislation. Mr Glen, who opened the discussion, was followed by Messrs 11. E. Anderson, F. H. Bass, T. L. Ward, G. J. J. Feil, and W. A. Appleton. It was mentioned that the Commission’s criticism of certain company promotions and practices applied mainly to certain kinds of land-utilisation schemes and investment trusts particularly those of the contractual type. It was desirable, of course, to have adequate precautions against improper exploitation of the public, but in the checking of evils which the Commission had exposed it was necessary to avoid procedure which would harass and hinder the development of legitimate enterprise. It would not be good for New Zealand to be subject to the dictates of any form of “autocratic socialism.” Public welfare would not be well served by “panic legislation.” Mr Feil remarked that one of the principal needs was a deterrent punishment of offenders against the present Companies Act. There was not a single officer of the State, whose duty it was to see that the Act was properly carried out. “Make Haste Slowly.” Mr Appleton gave a reminder of an old proverb, “make haste slowly,” which a famous authority, Lord Plender, had used in similar circumstances in England. The speaker declared his belief that, if the Commission’s recommendation for the establishment of a Corporate Investments Bureau were adopted, it might put the Government in an embarrassing position. Some of the public might have an impression that- company prospectuses approved by the bureau might have an element of “State security” in comparison with those which were condemned by that tribunal. It was decided to refer the whole matter to a committee.