The Banking Bill.

Manawatu Herald, 15 October 1896, Page 2

The Banking Bill.

■» The Bank of New Zealand and Banking Act Amendment Bill has been introduced to the House. The Bill providas that on and after the 31st March, 1897, the Bmrd of Directors of the Bank of New Zealand shall consist of eight psrsoup, of whom three shalfcSbe appointed by the Governor in Count cii, tbivje by the shareholders of the Bank, one by the members of the legislative Council and one by the members of the House cf Representatives. The directors in office at the time of the coming into operation of this Act; to be eligible for appointment or election. With respect to each of the directova to be elected by the members of the legislative Council and the H/;uae of Representatives respectively, the following provisions shall apply : — Ha shall hold office for three years, but shall be eligible for re-election. Tho provisions with regard to election of director by the Council contain a provision that except in c-ises where the Council or the House acts by resolution, the votes of members shall be given by sealed votiug papers. The directors first appointed and oleoted under this Act shall take office on the 81st day of March, 1897, and thereupon :— l. The directors then previously in office shall cease to hold office. 2. The president's office shall be deemed to be abolished. 8. The directors shall tike step 3to select and appoint a general manager at a salary not exceeding £1250 per annum. The remuneration of the directors whilst they hold office shall be at the rates following : — (a) The Chairman, £1000 per annum ; (b) each of the other directors, such sum not ex* ceeding £250 per annum as is fixed by the board : Provided that in overy case where a director of the Bank is also an attorney of the Bank of New Z 'aland Estates Company (Limited), then, irrespective o?*^ hi 3 remuneration as director of the Bank, he may also receive from the Company such remuneration, at the rate of not; more than £100 per annum, as h fixed by the board. Afcer the Ist July, 1897, no overdraft on aay account whatever shall be allowed by the Bank to any officer of the Bank or to any com* pany of which any director or. officer of the Bank is a director. The contract as to salary of the president, auditor and officer is declared void, provided that, in tha event of the present auditor ceasing to hold that office, and not going into the Bank's service within one year after the coming into operation of this Act, then, for the purpose of determining his claim on the pension fund of the Bank, he shall be deemed to have been in the service of the Bank during the whole period of hia service as auditor ; provided further that in the event of the person now holding tha office of president not continuing in the Bank's service in any capacity after the abolition of the office of president, then he 6hall be entitled by way of compensation for loss of office to such sum not exceeding one year's salary as the board thinks fit to grant. With respect to the accounts in the list marked B in the contract of sale and purchase between the Bank of New Z3aland and the Colonial Bank of New Zealand ''the directors of the Bank of New Zealand and the liquidators of the Colonial Bank of Nnw Zealand may lawfully enter into and carry out agreements for the absolute taking over by the Bank of New Zealand of all or any of the account? in that list by way of purchase, at suc-h price as the said directors and liquidators agree upon, anything in the said contract or any Act to the contrary notwithstanding : Provided that nothing in this section contained shall apply to any of the accounts in the lists marked 0 or D in the said contract. An assistant auditor may be appointed at a salary to be fixed. From and after the Ist day cf January, 1897, it shall be the duty of every such Bank as aforesaid to at all timas keep in the Colony bona fide assets to an extent rqual to, or greater than, its total liabilities ■ in this Colony.