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Hokitika Guardian, 28 February 1931, Page 4

The directors of tin l Bank of New South Wales, says the Otago Times, hnvo no cause to complain of intnmnerntonoss in the terms in which New Zealand shareholders in that institution have protested against the decision that the dividends declared by the bank shall be paid in Australian currency. The New Zealand shareholders may feel, as doubtless they do feel, that a grave injustice has been done to them in the deduction of 3s Cxi in flic pound in the amount of their dividends, but their objection to the decision of the directors of tlm bank has been generally expressed in moderate language. Their ease is. indeed. so strong that the mere statement of it is almost sufficient to carry conviction. It is actuality supported by the explanation of the principles governing the povment of dividends that was furnished a few days ago by the general manager of the bank for circulation in New Zealand: “I be general rule of law affecting dividends is that no one shareholder is entitled to receive from a company, per -unit of Tiis bolding, any more than any other shareholder.” Pmriselv; and it is the observance of that rule of law which is desired by the shareholders of the bank in New Zealand. The effect of the decision of the directors is that the Australian shareholders are accorded a very material advantage over the shareholders in New Zealand. Tt has been estimated that the differentiation that has been made between the Australian and New Zealand shareholders will retain in the Commonwealth, in the service of the bank, about £l6. ~ 000 which should, if the dividends were paid on a par basis, have come to this Dominion. Tt is claimed, however, by the hank that it is acting under legal advice that it is bound to pay its dividends in Australian currency. If that is sound advice, as presumably it is, the Now Zealcml shareholders, who are said to he 1300 in number, have been seriously misled, both by the fact that the hank possesses a New Zealand register and by the belief that it is. as l,os U-cn arMierl. really donii-iled in X„,r Zealand. And tlmso will not agree tbsY the advice hv which the bank has been glided has deprived them of a substantial grievance.