INSCRIBED STOCK

Dominion, Volume 10, Issue 3167, 18 August 1917, Page 8

INSCRIBED STOCK

IMPORTANT AMENDMENTS IN BILL CERTIFICATES OF TITLE TO BE ISSUED When, the Legislative Council met yesterday, the Statutes Revision Committee, to which had been referred tho New Zealand Inscribed Stock Bill, reported tho Bill with amendments. A new clause had been added providing that in addition to the power to issue, stock certificates in favour of bearer, the Registrar should be required, on application, to issue to the registered holder of any inscribed stock a certificate of title, certifying That tho applicant was the registered holder of tho inscribed stock referred to therein. Any such certificate of title would be conclusive evidence of ownership, and also that no stock certificate in favour of bearer was outstanding in respect of the stock mentioned in the certificato of title. The transfer of tho certificato of. title would not operate as a transfer of interest in tho stock, and no dealings with stock for which a certificate of title had been issued would bo recognised by (he Registrar unless tho certificate had been produced and cancelled. The clause provided also for- the replacing of lost certificates of title.

Sir Francis Bell said that the new clause had been drafted to meet tho difficulty mentioned by the Hon. 0. Samuel', who had pointed out that the stock certificates in favour of bearer, as originally proposed, would not bo regarded by banks as sound security. The Bill as amended provided for tho issue of two classes of certificates, one the ordinary stock certificato payable to bearer, and tho other a certificate of title, which would not be transferable, and which would prevent the stock being dealt with except through the certificate. Trustees would be able to hold the certificates of title as evidence of possession, and so long as the certificates were out no change of ownership could be recorded in the register. There might be a doubt regarding tho right of the Council to make the amendment, but lie hoped that point would not bo raised. Hβ had consulted with Treasury officers concerning (he suggestion that 'transfers of inscribed stock should bo free of stamp duty. Tho Council could not make an amendment in that direction, but he understood that tho point would be attended to elsewhere. The stock would not bo free of gift, duty, but it would be made free of ordinary stamp dutv. Sir Francis Bell added that ho wiehed to express his own indebtedness and that of tho Government to the Hon. 0. Samuel for suggestions (hat had resulted iu tho improvement of Hip, machinery of the Bill.

The Bill as amended was put through its final stages and passed. When the Bill, as amended, was received in the Hpuso of Representatives Sir Joseph Ward said that the. effect of the amendment would be. to make it easy for any owner of stock to obtain a. loan from a. bank or other Institution by depositing his certificate of title, wbich would be TPgarded as absolute proof of ownership. A further amendment Of the Bill, providing for transfers without stamp duty, would bo introduced by Governor's Message. The amendments made by Iho Legislative Council wrtp. agreed to. Amendments to the Bill were introduced by Governor's Message. Sir Joseph Ward said that tho object of tho amendments was to ensure that transfers of inscribul stock after the flotation of tho loan should not be liablo to s>tamp duty. This was tho case in England.

The amendments were added to the Bill.