‘Company Formed By Bankrupts’

Press, Volume CVI, Issue 31094, 24 June 1966, Page 12

‘Company Formed By Bankrupts’

(From Our Parliamentary Reporter)

WELLINGTON, June 23.

A call for an inquiry into a Christchurch company, the Credit Union of Canterbury, was made in Parliament tonight by the Opposition member for Christchurch Central, Mr R. M. Macfarlane.

Speaking during the Budget debate, Mr Macfarlane said many people in Christchurch were concerned at a loophole in the company law of New Zealand. He said the Credit Union of Canterbury was registered on February 23, 1965. The two persons who

founded the company were undischarged bankrupts. They left the company and the man who subsequently took over as general manager was also an undischarged bankrupt. The position now was that the doors of the company were closed and it owed £4OOO. “Hundreds of people in Christchurch lost their investments and their savings.” Mr Macfarlane said. If a ioophole in the law existed it should be closed, he said.

“When undischarged bankrupts can come in and form companies there is something wrong with the law of this country.” At the request of the Minister of Finance (Mr Lake), Mr Macfarlane repeated the name of the company. IHe said that at a later stage he could give the names of i those associated with the formation of the company.