COMPANIES'AMENDMENT BILL

Dominion, Volume 14, Issue 6, 2 October 1920, Page 8

COMPANIES'AMENDMENT BILL

Sir Francis Bell yesterday introduced in the Upper House tho Companies Amendment Bill. An explanatory memorandum accom : PMiying the measure stateslt is proposed by the Bill to extend the existing law by allowing dairy companies, withcut altering their memoranda or articles of association, to become shareholders m other companies having for their .object th» exporting, marketing, and disposal ot Ne.v Zealand produce. In 1908 tho Coi. panies (Consolidation) Act, as passed br the Imperial Parliament, contained a special provision authorising reorganisation of capital, and it is desirab e to havo.tho same provision in New Zealand.. Clause 3 is identical with section 4a of the Imperial Act, except that tho clause in tho English Act requires confirmation by the Court, whiclv it, is considered unnecessary to require in New Zealand. Sub-clauso (2), providing that tho section shall be deemed to be m force since tho passing of our Companies Act, J9OB, is pr(.posed, because there have been in-Aew Zealand since 1908 reorganisations of oapital, the resolntions effecting which have followod the English precedents, but which may bo hold to bo invalid by rea--80-i of a similar provision to that in the Enslish Act of 1908 not being included m our Companies Act, 1908."