STOCK EXCHANGES

New Zealand Times, Volume LIII, Issue 12616, 29 November 1926, Page 8

STOCK EXCHANGES

The following interesting remarks on the functions of stock exchanges were made at the annual meeting of the Wellington titock Exchange held last week: —- ‘’Public opinion has recently been focussed to some extent upon the functions of stock exchanges. This position has arisen as the result of the action of the committee of the Melbourne Stock Exchange in striking off its official list the name of an Australian oil company, because, in the opinion of the committee, sufficiently full and adequate information of the tests and similar activities of the company were not made available for the use) instruction and benefit of shareholders and the investing public. This disciplinary act of the Stock Exchange had instant effect for the directors and officials promptly gave explanations and made availaolc the desired information. “It is gratifying to see the interest taken in the case, for all well-conduct-ed exchanges work upon the principle that the functions are to be seen that share business is conducted upon sound and proper lines, that anything of a shady character is prohibited and that the "fullest possible protection is given to legitimate investors in their efforts to prudently invest their spare capital and to see that it is protected when so invested. “An evidence of this note is the new rule passed at the last annual meeting of the Stock Exchange Association of New Zealand to the effect ‘That any listed company which interferes with the rights of preference shareholders, such as writingdown of capital, may he removed from the official list.’ “No company is admitted by the exchanges to the official list except after She most careful scrutiny of its perionnel and prospects. The fullest information has to be supplied as to the aims and objects of the company and lists of shareholders and directors have to be furnished to the committee with documents such as articles and memorandum of Association, bal-ance-sheets and so on. All this is done for the protection of the public and to keep the business on the highest possible level of honesty and integrity.”