COMPANIES BILL

Hokitika Guardian, 22 November 1933, Page 2

COMPANIES BILL

ITS AMENDMENT IS PROBABLE *

CHOICE OF AUDITORS LIMITED

'(Per Pre s 3 Association, Copyright).

WELLINGTON,'November 20,

A modification, of the of the- Companies Bill limiting the choice of auditors, except' with the special approval of the Minister, to members of .three accountants’; organisations is almost certain to he accepted by the Government when the committee stages of, the .bill, are taken in the House this week. - The Minister for Finance ’ (the. Rtl .Hon. ,'J. G. Coates) delayed this stage of the bill for a fortnight in order that interested parties might make representations on the more controversial clauses of which this is one. ;

Although the bill in general is based on the English company law, there, is no similar provision restricting the choice of auditors in the Imperial net. The. second reading debate in the House showed that tb® elapse was unlikely to pass - without substantial amendment, and it .is believed that, representations since rnade have c<)pvii)ced the Government that the provision as it stands is' not fttlogether just. Itis not certain" wh®t form the modification will ; take, but it may he designed ,in the direction of admitting accountants at present in prac* Two other of . the bill hare airoused controversy—the" prohibition of share hawking and the more ’ stringent regulations govern T ing the issue of company prospectuses —but-these, it is understood, will both be retained, since they are considered necessary for tho protection of the public.