LONG-TERM MORTGAGE

Dominion, Volume 28, Issue 108, 31 January 1935, Page 8

LONG-TERM MORTGAGE

Bank of New Zealand Shares

REDEMPTION NOT CONSIDERED

Owing to the sudden drop in the market price of Bank of New Zealand “D” long term mortgage shares during the past few days, and the apparent fear, as evidenced by recent contributions to the Press, on the part of some of the holders of those shares that there was a proposal on foot to repay the shareholders at par, Mr. Bucliolz, president of the Stock Exchange Association of New Zealand, approached the general manager of the bank, Mr. Dav. son, to ask, if there was any truth in the suggestion. Mr. Dawson gave his assurance that there was not the slightest foundation for such rumour, and that no such suggestion had ever emanated from the board, nor had it even been discussed. The Act empowering the issue of Hie “D” long term mortgage shares makes it quite clear that if ever repayment were considered it would be a matter entirely in the hands of the ordinary shareholders. Any resolution to this effect must be carried in the usual manner at a meeting of shareholders, and a further protection to the long term shareholders provides that such resolution must be confirmed by a postal vote. Of the 468,750 “D” long term mortgage shares issued to the public, 400,415 are at present held by ordinary shareholders themselves, and no matter how large a holding an ordinary shareholder may have, he can have no greater voting power than 2000 shares.