THE BANK CONTROL.

Dominion, Volume 6, Issue 1788, 28 June 1913, Page 5

THE BANK CONTROL.

SHAREHOLDERS MEET.

THEIR PROTEST & A MOTION.

FURTHER MEETING.

TO ASSEMBLE ON JULY 4.

Shareholders of the Bank of New Zealand met again yesterday afternoon. In the absence of the chairman of directors (Mr. Harold Beauchamp), Mr. Martin Kennedy was voted to the chair. It will bo remembered that on Thursday, the day appointed l'or tho annual meeting .of shareholders, -Mr. C. P. Skerrett had desired to have a series of resolutions concerning tho capital of the bank dealt with, but tho chairman of directors (Mr. Boauclminp), who presided, ruled that theso could not bo considered then, and could bo brought up at a meeting set down for July 4. Finally, a suggestion that Mr. Martin Kennedy should take tho chair was approved, and Mr. Beauchamp, the Government nominees, mid officials of the bank left the meeting room. oil tho motion of Mr. Kennedy, seconded by Mr. .Skerrett, the meeting was adjourned till 3 o'clock yesterday afternoon. About twenty were present when tho shareholders reassembled yesterday. Mr, Martin Kennedy's Criticism. Mr. Kennedy stated that tho resolution ta adjourn the meeting on the previous day had been due to the arbitrary action of Mr. Beauchamp in refusing to admit Air. Skerretfs motions. Now, Mr. Beauchamp held that tho annual meeting, was finished, -bough lie had said at the commencement that the usual business would be dono. They had attended many meetings of the bank, and in no instance did tho chairman adjourn tho meeting until the business on tho order paper was linisfied. It was usual, then, too, to ask if there was any further business. On Thursday a reverse ; procedure was adopted, and this showed the arbitrariness of the chairman. Mr. Kennedy further characterised Mr. Beauchamp's action as "arbitrary, unwarranted, and wholly illegal in practice." The object of such an attitude was clearly to deprive tlio shareholders of the opportunity of having their expressed views included in the statement which goes out to Great Britain and Australia. "He kindly tells us," continued Mr. Kennedy, "that wo can have our regular meeting on July 4. Wo have no need to thank him for that, but wo desiro to have our constitutional rights." Mr. Kennedy added tliat ho was satisfied that Mr. Beauchamp had a better knowledge of procedure than to adopt Tuesday's course oven on the advice of a barrister. Shareholders would see how unfair the whole thing was. He had no hesitation in telling Mr. Beauchamp and thoso now before him that the chairman should sooner strain the law, if necessary, than deprive the shareholders of the opportunity of holding their own meeting in their own way. Mr. Beaucliamp's action was badly conceived, and, as the speaker had told them Mr. Beauchamp was -placed fin ® most unfortunate position which nono would car© to occupy. As Mr. Beauchamp and his friends had refrained from coming to this meeting it appeared, that ho intended to treat it as no part of tho annual meeting. Ho Kennedy) had talked the matter over with Messrs. Skerrett and Watson, and all three had como to tho conclusion that tho best thing to do would be to adjourn this meeting till, July 4,.find, for the present; to do littio or no business. Thero would be one motion, which Mr. Kirkcaldie,,would move and which would be quite acceptable, and, after passing it, tlio meeting' could adjourn to the date mentioned. Mr. Kennedy concluded bv stating that Thursday's occurrence had handicapped the shareholders in tho matter of proxies. . Mr. Kirkcaldie's Motion re Increased Capital. Mr. S. Kirkcaldie then rose. He stated that ho thought that tho thanks of every shareholder were duo to Mr. Kennedy for the action, which ho had taken at the meeting on Thursday. It was plainly evident that, unless Mr. Kennedy was sunported by tho shareholders, the Board of Directors and the Government would do exactly as they liked with the shareholders' interests. He had never been more astonished than he was when ho heard tho chairman of the Board of Directors (Mr. Bcouchamp) remark that tho board had furnished proposals to the Government for an increase of capital. That must have been dons without tho consent of the shareholders,' or in do6a.nco of it. Mr. Kirkcaldie then moved: "That tho directors of tho bank bo requested to furnish to _ shareholders (for consideration at their meeting to bo held on July 4) a copy of tho proposal submitted by tlio board to tho Government, relating to tho proposed inorenss in capital." Mr, J. A. Plimmer seconded the motion, and endorsed tho reiiiarks of tho previous ' speaker. Remarks by Mr. C. P. Skerrett. Mr. C. P. Skerrett then moved tlio adjournment of the meeting till July 4. He refrained, ho said, from making any comment on tho action of the chairman at Thursday's meeting, or on the opinion given by tho board's solicitors. He l>elieved tliat commont would not bs advisable at tliat slago. Ho desired to avoid any feeling of hostility as between the chairman and shareholders. Ho quite agreed-with what had been said by Mr. Kirkcaldie and Mr. Plimmer. It appeared clear that tho shareholders could not expect the board, as at present:' constituted, to even represent their views to tho Government, or be tho channel of communication, between tho! Government and the bank. Ho pointed out that tho directors had refused even to liston to tlio views of the shareholders upon vital matters connected with the interests of the and the bank. The shareholders' action was a complete justification of thoso gentlemcd who had called tho special meeting of shareholders for July 4, and had taken sucli steps to ensure that their views would be considered by tluo Government before any new legislation affeoting tho bank was passed. The adjournment of tho meeting was sufficient protest against the action of the chairman, and no good would 1» done by proceeding with tlio business of the meeting until July 4, when tlie.v believed thero would be a largo attendance of Shareholders not resident in Welling--ton. He ventured to say that tho shareholders would be in no disadvantageous position at that meeting, because tho meeting would not be graced with tho presence of tho chairman or Government appointees of tho board. It would only mean that tho business would not be recorded in tho official minutes of the bank, and .would not bo transmitted for tho information of shareholders abroad. Dr. Knight seconded Mr. Skerrett s \ motion, and tho meeting adjourned till 1 11 a.m. on July 4.