THE PERMANENT INVESTMENT AND LOAN ASSOCIATION.

Globe, Volume XXIII, Issue 2183, 23 February 1881, Page 3

THE PERMANENT INVESTMENT AND LOAN ASSOCIATION.

Sib, —Be good enough to give me space for one or two remarks upon the letter of “Investor ” which appeared in your columns a few days ago. I quite agree with the spirit and apparent object of your correspondent, but I think he is wrong in assuming that the vacancies at the Board have not been advertised. I have not seen it myself, but I believe the manager is too good a man and too attentive to his duties to have omitted this, but the election is none the less a farce on this account, as no shareholder has the slightest chance of obtaining a seat in this "holy of holies ” who is not approved and supported by the other directors. I think, however, that your correspondent would have done a more immediately useful work if he had called attention to the following extraordinary exercise of authority by the directors. Three years ago a gentleman wag elected to the office of director whom it was well known was about to proceed to England, which ho did in a few weeks afterwards, and was absent for considerably more than a year, without the vacant seat being filled up. I see by the report that the fees (£3OO a-year) intended for a full Board were carefully taken and I presume divided amongst the remaining five directors. I consider that this was a most extraordinary abuse of power, and several important questions suggest themselves in connection with it. First—Was there a full Board within the meaning of the rules daring this gentleman’s residence in Europe ? Second —Did not his absence make bis seat vacant ? Third—lf so, were the proceedings of the association for that year legal ? No doubt a certain number form a quorum for the purposes of any ordinary meeting, but surely this may not be interpreted so as to practically reduce the number of directors for fifteen months or so below the number expressly provided by the rules. I feel confident that if any person had a large interest in upsetting the proceedings of the directors during the period I refer to, he could give the Association much annoyance, and probably put it to considerable expense, whatever might be the issue. What is wanted in this Association is a greater spirit of enquiry on the part of the shareholders in its affairs. There ought to be more interest taken in its annual meetings and in its elections ; and as conducive to this, as well as for many other reasons, the elections both of auditors and directors should be popularized, and one of those going out annually, should be (as suggested by “Investor ”) ineligible for re-election for a fixed term. Fourteen days’ notice from a candidate is altogether unreasonable. All that is required is sufficient notice to prevent persons getting up at the meeting and wasting time by proposing candidates on the spur of the moment. Two days’ notice would be ample. Trusting that the shareholders will in future take more interest in the proceedings of the directors, Yours, Ac., Obnsok. Christchurch, February 22nd, 1881.