The New Banking Bill.

Feilding Star, Volume XVIII, Issue 90, 13 October 1896, Page 2

The New Banking Bill.

* (Per Press Association) Wellington, This Day. The Banking Bill provides for the reconstruction of the Board of Directors of the Bank of New Zealand in accordance with the report of the Banking Committee to take effect from 31st March, 1897. The Directors at present in office are to be eligible for appointment uudor this Act. The Directors are to hold office for 3 years and are to be eligible for re-elec-tion. The new Board is to take office on 31st March, 1895, after which the Directors then previously in office shall cease to hold office. The President's office shall be deemed to be abolished and the Directors shall take steps to appoint general manager at a salary not exceeding £1250 per annum. Tbe salary of the Chairman of the Board is fco be LIOOO and the Directors i-250 each. After lst July, 1897, no overdraft on auy account whatever shall be allowed by the Bank to any officer of the Bank or to any Company of which any Director or officer of the Bauk is a Director. The contracts as to the salary of the President, auditor and other officers are declared void and these officials are to have no claim for compensation, but the present auditor for the purposes of his claim on the Pension Fund of the Bank is deemed to have been in the service of the Bank during the whole period of his service as Government Auditor, while if the President does not continue in the Bank's service in any capacity after the abolition of the office of President he is to receive compensation not exceeding the amount of one year's salary. It is provided that tbe Directors of the Bank of New Zealand and liquidators of the Colonial Bank may enter into an agreement for the absolute taking over by tbe Bank of New Zealand of all or any of the accounts in the B list by way of purchase at such price as the Directors and liqnidators may agree upon, provided that nothing in this section shall apply to any of the accounts in the C or D lists An assistant auditor is to be appointed at a salary not exceeding £1000 per annum. The Governor in Council is empowered to prescribe forms of returns and balance-sheets to be made by the Banks, and every Bank is compelled, under certain penalties, to keep assets in tne colony equal to liabilities. Provision is made for tbe payment of interest on preferred shares held by the solony in the Bank without the consent af the shareholders being necessary.