TRUST COMPANIES

Waikato Times, Volume 117, Issue 19545, 6 April 1935, Page 7

TRUST COMPANIES

EFFECT OF LIQUIDATION. DEBENTURE-HOLDERS’-INTENTIONS (By Telepranh.—m'ess Association.) WELLINGTON, Saturday. Mr Norman Levy, Wellington district representative of the Investment Executive Trust group debenture holders’ committee, commenting on the passing of the Companies (Special Liquidations) Act, drew special attention to Mr Coates’ reference that provision is made under Section 193 of the Companies Act, whereby deben-ture-holders are enabled, with the approval of the Court, to take over intact the entire assets of the company in a reconstructed framework. II is the intention of the New Zealand committee to pursue this course at tlie earliest practical moment.

In regard lo tlie passing o'f tho Trustee Company Protection Act, lie said it could only be deplored that the application of this act virtually deprived them of tlie rights and powers which their interests in tlie Dunedin company conferred, and thereby a grave injustice had been dealt them. He did not desire lo deal with the serious loss which had been caused by tlie worthless plea of protecting that company against the possible machinations of one individual as that risk had been eliminated. Tlie debenture holders wanted lo exercise the maximum rights and advantages conferred by their holding in the Dunedin company, and they were llic best qualified section of those concerned lo take over tlie control and administration of Hie company.

Mr Levy protested against Hie legislation being rushed through. He contended that there was a risk of saddling the trust- building in Sydney with £SOO per annum extra Plate and Federal taxation, which otherwise would not be applicable.