BANK OF NEW ZEALAND.

Stratford Evening Post, Volume XXXVI, Issue 50, 4 July 1913, Page 3

BANK OF NEW ZEALAND.

MEETING OF SHAREHOLDERS

[Per Press Association.] Wellington, July 4

A meeting of shareholders in the Bank of Now Zealand was held to-day, ,vhen the recommendations made by the directors to the Government were considered, and motions on behalf of shareholders were proposed by Mr Skerrett. Mr Kennedy said that as the chairman of directors (Mr Beauchamp) regarded the meeting as informal, it devolved upon him (Mr Kennedy) to occupy the chair. They would realise that the meeting was convened under a deed of settlement,

the Government nominees on the Board not assenting to the meeting. Tins he considered a most arbitrary proceeding. He was firmly of opinion that the time had arrived when the Board should be reconstituted, and he explained the action he had taken in the matter in London and New Zealand.

Mr .Skerrett, in moving the resolution already published, advanced three propositions on which he based his arguments (1) That the business and control of the Bank belongs to the shareholders, and that the Government have only the right of shareholders in respect to the whole Bank; (2) When the Bank discharges, or is prepared to discharge (unless the Government desires otherwise) all its obligations' guaranteed by the Government, the}Government shall have only the right t'6 take such part in the administration of the Bank in future as to insure that the business of the Bank is safely and prudently conducted, and that the prosperity of the country shall not in future be imperilled by any financial diculty of the Bank; (3) the Government is not entitled to seek further interest in capital and profits and interest of the Bank except with the full consent of shareholders, being bound by an honourable understanding with the Government in 1903. The Government should not seek in future any further interest in profits oeyond the half million debentures now held. He stressed the fact that he desired shareholders to bear in mind that the whole weight of his resolution was not whether the shares should be issued at

par or otherwise, but that shareholders interested should determine whether the shares be issued and upop what terms.

Mr Watson seconded in , a lengthy speech, and after discussion the motions were carried. . , ■•■•,,.