BANKING ENTERPRISES

Hokitika Guardian, 18 October 1929, Page 8

BANKING ENTERPRISES

interesting questions RAISED. WELLINGTON, Oct. 16. Two questions to the Government were tabled in the House to-day by Mr M’Combs relating to new banking corporations proposing to operate in New Zealand. He stated that since Parliamentary authority had been given for the formation of one bank in the Dominion twq other banking companies with New Zealand directorates had been promoted and registered in New .South Wales to avoid New Zealand restrictions. Both, he said, had issued prospectuses in New Zealand, which did not comply with the New Zealand Companies Act, and one of such companies had, he continued, already been placed in liquidation at jonsiderable loss to subscribers, who were, forced to bear promotion expenses. '

He askfed the Government would tighten up the provisions of the law, relating to the promotion of companies and prohibit the issue of prospectuses, whether of companies registered in New Zealand or abroad, which did hot comply with the New Zealand Companies Act. In a further question, Mr M’Combs asked if it was a fact that the prospectuses of many new companies, recently promoted by share selling concerns did not* comply with the provisions of toe Companies Act, and, if so, why the Registrar of Companies did not or was unable to take steps to enforce compliance for the protection of the public.