COMPANIES ACT

Hokitika Guardian, 26 February 1932, Page 8

COMPANIES ACT

NEED OF STRENGTHENIN'C. CHIEF JUSTICE'S VIEW. WELLINGTON, February 23. "It is about time the provisions of (ho Companies Act were strengthened, as they have been ill pngland. In England there was legislation passed as fallback as 1929. I think it was dealing 'with a lot of these matters. Apparently we, arc still thinking about ,t." remarked the Chief Justice, Sir AlL'ho el .Myers, while hearing an action. “What do you mean by an ‘abridged prospectus?” 'his Honor asked one witness.

Witness: I don't know. His Honor: l don’t know, and 1 am asking you because it is your language. Witness : I wanted to have the prospectus printed. I submitted it to the assistant registrar of companies, but it was not approved. 1 then made the alterations which I considered the assistant registrar of companies required. . ■ Counsel : You say you were advise to have the prospectus printed in t >•> Witness: Yes. It was not fraud. Me did not do it with any intention ol His .Honor : AJI 1 can say is, it dues not necessarily connote fraud at all, but you made a beautiful mess of >b Counsel : Did you take legal advice. Eis Honor: If the suggestion is that he was. advised to take this course by the assistant registrar of companies. j mm sav is that it is hardly ia.r to too assistant registrar. 1 don't believe such advice was ever given. The ass.stan revistrar would not advise him as to the issue of a new prospectus. , U a later stage his Honor said: d think it is well worth while dn t w authorities to consider whet her a. > prospectus should he allowed to go to the public unless it hears a < u 1 1 •* 1 of some authority or author! u-s. know, of rouse, there is a danger that, because if a prospectus bears tu imprimatur, of any Government ofh.e tlu ! Sll g U estioil is that the Government ought to he responsible ’ im ' IIS ‘"'-J Joss. 1 know that is a difficult, b. i, does occur to me that there on eh ■ to be some half-way home so that • least people ran he sure that the U. of the prospectus have'been fully considered by someone otlir, Ibe promoters themseives.