COMPANY LAW.

Auckland Star, Volume LIX, Issue 229, 27 September 1928, Page 11

COMPANY LAW.

PREFERENCE ON gAT.A^TF-ff.

WINDING UP PROCEDURE,

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day.

Tlie Companies Amendment Bill, in-! truduced by the Hon. F. J. Rolleston, Minister of Justice, is a short measure I •which includes a clause in substitution! of procedure in principal act giving companies power to compromise with creditors and members. The new provision sets out that a compromise or arrangement ajiproved. by three-fourths in value of creditors, or "class creditors, yotinjr in person'or by proxy at a meeting, shall be binding on all* 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. PreferI euce provisions for salaries and wages in ceases of winding up have [ been varied. Preference is io be given to the salary or wages of any clerk or servant in r.-spect of services rendered within four months of the winding up, the total amount, formerly £,10. "being increased to £100. The preference period in respect to the wages of artisan?, labourers, or workmen, has has been extended from two months to four months, and the total individual payment subject to preference is not to exceed £50. Provisions regarding preferential payments 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 shares of a deceased shareholder without production of probate or letters of administration in cases where the value of the shares does not exceed