Dairy Companies And Dry Shareholders

Chronicle (Levin), 21 July 1949, Page 11

Dairy Companies And Dry Shareholders

Press Association)

(Per

WELLINGTON, July 20. Based on recommendations of a spothill committee appointed last year to investigate the problem of dry share "holding in co-operative dairy compan ies, a co-operative Dairy Compainei Bill was introduced ajid read a lirst time, in the House of Bepresentative* to'-day. The Acting-Minister of Finance, Mr Nordmeyer, who was in charge of thfc Bill, said the purpose of the measun was to ensure that dry shares vvere retired and that those people whose business was the supplv of milk or creain would be given eoniplete control of the affairs of the companv eoncerned. Alodel articles of association foi dairy companies are given in a scheduk to the Bill ancl if an existing eo-opera-tive dairy companv fails witliin two years, to adopt articles in this form. it sliall eease to be a co-operative dairy companv within the meaning of the legislation. The Bill also consolidate.s existing laws relating to co-operative dairy companies. i\rr Nordmever said the Bill followeil very largely the recommendations of Ihe committee which had been set up ■it the request of the dairy industry. ddie law draftsman, however, had not adopt ed the ternis "dry" and "wet" -hareholders as the committee had done >ut used the term "supplying" shareuoldeix The Bill laid it down that onh supplying shareholders vvere entitled to v ote at anv meeting of a company or on anv postal ballot conducted by e company. The Bill provides for the registration of co-operative dairy companies and dairy factories are not entitled to describe themselves as co-operative un!'\ss entitled to registratioin. It establishes a co-operative dairy •ompanies tribunal to flx the value or shares surrendered and to deal witn associated matters. Tlie tribunal will "'onsist of oue meinber appointed bv the -Minister of Stamp Duties on the nomination of the New Zealand Dairv Board. oue member appointed on the reeommendation of the Minister of Agricul-

ture, and one other member appointed by the Minister of .Stamp Duties. The decisions of the tribunal will be iinal. There are a number of machinery clauses relating to the surrender of shares and their reissue.