COMPANY LAW

Wairarapa Times-Age, 13 August 1938, Page 5

COMPANY LAW

CONTROL MEASURE PASSED IN NEW SOUTH WALES ACTIVITIES OF McARTHUR GROUP SPECIAL POWERS GIVEN TO PUBLIC TRUSTEE By Telegraph—Press Association. Copyright. SYDNEY, August 12. The Legislative Council today, in an emergency sitting, passed a Bill giving the control of two assurance companies (the Commonwealth General Assurance Corporation and the Producers and Citizens’ Assurance Company) to the Public Trustee, Mr Geddes. The Bill gives the Public Trustee power to veto any transactions of the two companies. Speaking in the debate yesterday, the Minister of Justice, Mr L. O. Martin, explained that both companies were in difficulties and that the policyholders had no share in their management. The Government was convinced that the canvassers representing the National Stock Exchange, Ltd, had, by insidious means, been persuading the shareholders of both companies to part with their holdings. The Minister declared that the National Stock Exchange was an absolute instrument of Mr J. W. S. McArthur and his group, which had acquired a controlling interest in one of these companies.

In moving the second reading of the Bill, Mr Martin said that the National Stock Exchange. Co, Ltd, was incorporated in December, 1935. Its nominal capital was £lO,OOO, of which, according to the last return, £9909 was paid up. The capital was represented by 55,000 shares of 10s each, fully paid up, in the McArthur Trust Ltd., a Brisbane company, and valued a £2406. There were sundry debentures valued at £7327, a motorcar worth £306, and an establishment account of £261. Mr Martin said that the nominal capital was recently increased to ' £25,000, and according to a return dated August, 1937, the directors were Messrs Oswald Arthur Bridgewater, of Christchurch, and A. W. E. Stevens, of Sydney. A return dated August 4 last showed that Messrs J. W. McArthur, now of Sydney, and M. V. Bate, of Auckland, had been appointed to the directorate. The bulk—99o0 —of the shares were held by the Investment and Development Corporation of Wellington, the principal directors of- which were Messrs McArthur and Bridgewater. During the debate, Mr J. Concannon declared: “This McArthur must be a gentleman of outstanding ability. This .is the .second time in our Parliamentary history when emergency legislation has been required to deal with him.” ■ I The majority of Labour members claimed that legislation should be’ passed to deal with insurance companies generally, and the Minister in charge of the Bill, Mr Hawkins, said that the Government was now considering a general overhaul of the company laws. Mr Martin stated subsequently that the interests of policy-holders were now completely safeguarded as far as the two companies were concerned.

FIGHTING BACK mr McArthur to stand AGAINST PREMIER. PROMISE TO EXPOSE FINANCIAL RACKET. (Recd This Day, 11.15 a.m.) SYDNEY, This Day. Mr J. W. S. McArthur has announced that he will oppose the Premier (Mr B. S. B. Stevens) as an Independent candidate at the ■next State elections. Mr McArthur said: “My reason for taking this step is to expose a financial racket prevalent in this city. By being a candidate opposed to the Premier, I shall be in a position to tell the public the underlying reasons for the continual legislation against me personally. No consideration whatever will prevent me from standing for the Croydon seat.”