PUBLIC COMPANIES.

Dominion, Volume 3, Issue 841, 13 June 1910, Page 8

PUBLIC COMPANIES.

QUESTION OF AUDIT. DEPUTATION TO PREMIER. A deputation from the New Zealand Society of Accountants waited on tho Prime Minister on Saturday to ask that legislation should bo introduced providing that tho audit of the accounts of public companies should bo performed- only by professional accountants.

Mr. Peter Barr, of Dunedin, president of the society, expressed its appreciation of the Government's recont legislation, to "which the socioty owed its origin. The society' had just met in conference, and framed regulations, which would be submitted to the Government for approval. Tho Prim© Minister had taken exception to the inclusion of friendly societies in a proposed regulation limiting the audit of public bodies to public accountants, on tho grouud that tho conduct of these societies was governed by a special Act. With regard to the proposal that tho audit of the accounts of' other public bodies should he performed only by professional accountants, the feeling of.tho recent conference was decidedly in favour of legislation being' passed in that direction, though it was not thought wiso to deal with it by regulation in the meantime. A resolution had been passed that tho council interview the Prime Minister, and ask for an amendment to tho Companies Act in the direction indicated. It was not intended that tho amendment should include private companies or limited liability companies. Tho development of public compauies was increasing every year, and the amendment asked for was advisable in the interest of investors and of the general public. It was felt, also, that it was scarcely right that men who had to make a living by accountancy should have their profession trenched upon by others who had settled incomes, and might even undertake audit work at lower fees. Tho two classes in the society's membership were agreed that this matter was worthy of tho Government's consideration.

Mr. Thomas Howarth, of Auckland, said that commercial accountants were not antagonistic to the legislation desired. Ho endorsed the arguments of Mr. Barr, and stated that tho meeting of accountants held in Wellington on Thursday night, which was probably Lho largest meeting of accountants that had been held in New Zealand, was practically unanimous as to tho desirableness of such legislation. Sir Joseph AVard said he thought that the proposal was worthy of faithful consideration. He would require to be perfectly sure that Parliament would be prepared to pass such legislation. His, own feeling was that it would bu a good thing for the public, and a proper thing for accountants. Interference with private or limited liability companies was another matter, and ho thought that they were right in not asking for that. The representations of the society would bo considered with a view to the introduction of legislation on the lines suggested. Mr..Barr stated that the regulations adopted by the society had been considered with very great, care, and accountants throughout tho- Dominion had had an opportunity to consider theni. They.would be glad if tho Primo Minister would announce as soon as possiblo if they met with the approval of the Government, without which they could not take effect. Tho Prime Minister promised that the regulations would be considered as soon as possible.