POLICY HOLDERS MEET

Press, Volume LXXIV, Issue 22507, 15 September 1938, Page 4

POLICY HOLDERS MEET

PUBLIC INSURANCE COMPANY WINDING-UP UNDER COURT DIRECTION SUGGESTED (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, September 14. Wellington policy-holders in the Public Mutual Insurance Company of New Zealand held a meeting yesterday, at which there was an attendance of 30, to discuss the best course of action to take to protect their interests. Also present, as the result of a letter sent to the Minister for Finance (the Hon. W. Nash) was an officer from the office of the Registrar of Companies. The chairman suggested that the meeting should face the facts squarely. They had to face their liability. What they wanted to be satisfied about, though, was that they were not being asked to contribute more than they were justifiably liable for, that the liquidation of the company was carried out satisfactorily, and that the interests of policy-holders were adequately protected. The representative of a taxi company said he thought there were possibly a thousand or more policy-hold-ers of the company in Wellington. He did not think there was a sufficient number present to meet the expense that would be involved if they were to achieve anything worth while. Another of those present suggested that the meeting was not sufficiently made known to policy-holders, and the course of setting-up a committee was proposed. Policy holders could get in touch with the committee, a plan of action could be arranged, and the committee could report to another general meeting of policy-holders, stated the mover. The chairman thought the suggestion good, but first there should be a general discusison. Investigation Suggested

Reference to a meeting hefld in Auckland on Monday was made by the representative of the New Zealand Taxi Proprietors’ Federation, and the possibility that the directors of the’ company might agree to the windingup of the company under the supervision of the Supreme Court, with a liquidator appointed by the policyholders in charge. Several speakers urged that the operations of the company should be the subject of Government investigation. The chairman said he had been advised that the Government had not power to carry out such an inquiry without special legislation. With the end of the session close at hand there would be little chance of that being done. It had also been pointed out to him that the Companies provided them with a course of action if policy-holders desired an inquiry. l>ped copies of an extract from the act, setting out the requirements, were distributed. The chairman said it seemed to him that if they got a requisition signed .by one-fifth of the members of the company, and got sufficient financial guarantee, there would be nothing to stop them askin J, the Court to carry out an investigation.

It was suggested that Auckland's proposal would serve equally weu. If the liquidator found anything that, was not right it would be his duty to report it to the Court, and the Court s duty to take actißn. Subsequently a committee of sue was appointed and empowered to receive recommendations and co-oper-ate with policy-holders in Auckland. •The desire was expressed m the motion that Auckland policy-holders should endeavour to get f an agreement with the directors for the winding-up of the company, under the supervision of the Court, and a. liquidator nominated by policy-holders. ... It was suggested that the committee should have open to it a c ourse of action should the Auckland proposal fail, and another resolution was carried recommending the committee to give consideration to the question of proceeding under the Companies Act The chairman said obviously if this course was adopted they could not proceed without the co-operation of the other centres. ... “We would first have to advise them, and try to secure their co-operation. The trouble is that the policy-holders are scattered throughout New Zealand, and we have no central rallying pourt Action under the Companies Act does seem to me, however, to be. one of the simplest ways of clearing the whole thing up,” said the ,, ch^ r "?“- In reply to a question the chairman said the matter of another meeting would be left to the committee, and the meeting would be advertised.

Auckland Agreement The committee appointed by the meeting yesterday has been m co ®?" munication with the leader of the Auckland representatives, and. it was announced to-day that the directors had been met there, and . ? xp . r ® S ?u« themselves as being agreeable to the proposal put forward for the company to be wound-up under the direction of the Supreme Court, with a liquidator appointed by the policyholders. In view of this, the representatives of the Auckland policyholders consider that in the meantime no further action is necessary.