DAIRY AMENDMENT BILL.

Putaruru Press, Volume II, Issue 55, 6 November 1924, Page 3

DAIRY AMENDMENT BILL.

REPORT FROM COMMITTEE. Several Amendments Made. The amendments made to the 8.1 l by the Agricultural and Stock Committeee are as follows: In -clause 2, sub-section 1, which refers to the validation of shares the only material alteration is to extend the period during which a supplier was entitled to protest from three to six months. A new section has been added as follows: “ Every person to whom the directors of any co-operative dairy company have heretofore purported to allot shares in the company, but who was not a shareholder prior to such allotment, shall be estopped from denying the validity of the allotment if, being at the date of the allotment a supplier of milk, cream, or other dairy produce to the company, he did not within six months after receiving notice of such allotment, give to the company notice in writing of his objection to receive such shares, and within the said period of six months permanently cease te be a supplier of milk, cream or other dairy produce to the company.” Clause 2, which relates to the obligation to supply cream or milk to a factory has been amended by including the word' “ existing ” in the first sentence, which makes it read now “ the provisions in the ‘ existing ’ articles ” by the deletion of the words “ whether made before or after the passing of the Act,” and the alteration of the liability of a supplier to a penalty by making it every shareholder who hereafter makes default, and the deletion of the words “ or has heretofore.”

A new clause is added as follows: “ Provided also that nothing in this sub-section shall be construed to authorise the inclusion, after passing of this Act, of provisions in any articles of association purporting to oblige the shareholders of any company to supply milk, cream, or other dairy produce to the company, and all articles of association to which this sub-section applies (being articles made before the passing of this Act) shall, on the expiration of six months after the passing of this Act, cease to have any force or effect, save so far as they may be valid and effective irrespective of the provisions of this sub-section.” Sub-section 3 of clause 2, and clause 3 have been struck out. The Bill came before the House of Representatives on Wednesday night, and after a lengthy debate was passed. During the debate, Mr. W. A. Veitch (Wanganui) asked why co-operative concerns had failed to compete with private enterprise. If co-operative concerns were well managed they should be able to beat private enterprise, and yet the bill was brought down to bolster up co-operative concerns that had not been well managed. Mr. C. E. Macmillan (Tauranga) said he thought the bill would require some alterations before it would meet the wishes of all suppliers and dairy farmers in New Zealand.