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In the Supreme Court of New Zealand \ Wellington District. J In the matter of the Companies (Special Investigations) Act, 1934, and the Companies Act, 1933, and In the matter of the Sterling Investments Co. (N.Z.), Ltd. REPORT OF INSPECTORS.

1. INTERPRETATION. In this report, unless the context otherwise requires, " the Sterling Co." means " the Sterling Investments Co. (N.Z.), Ltd." " The Investment Executive Trust " means " the Investment Executive Trust of New Zealand, Ltd." " The Pacific Co." means " the Pacific Exploration Co., Ltd." " The Wynwood Co." means " Wynwood Investments, Ltd." " The Royal Commission in Sydney " means " His Honour Mr. Justice Halse Rogers," who was appointed by the Government of New South Wales as a Royal Commission to inquire into the affairs of certain companies, including the companies mentioned above. 2. INSTRUCTIONS. By Warrants of Appointment from His Excellency the Governor-General dated the Bth day of August, 1934, made in pursuance of the Companies (Special Investigations) Act, 1934, John Macfarlane Elliffe, John Leslie Griffin, Archibald Morris Seaman, and Herbert Douglas Vickery, Public Accountants, were appointed to investigate the affairs of the companies specified in the Schedule to the said Warrants of Appointment. Copies of the Warrants of Appointment were filed in the Supreme Court at Wellington on the 9th day of August, 1934. In terms of section 3 (1) of the Companies (Special Investigations) Act, 1934, John Macfarlane Elliffe and John Leslie Griffin, two of the Inspectors so appointed, respectfully submit a report of their investigations into the affairs of the Sterling Investments Co. (N.Z.), Ltd. 3. COMMENCEMENT OF INVESTIGATION. We commenced our investigations into the affairs of this company by attending at its registered office and calling for the production of the company's books and records. There were no books available at the registered office in Auckland, and we were informed that they had been taken to Sydney. With a view to securing information regarding this and other companies whose records and officers were in Sydney, we visited that city, leaving New Zealand for Australia on the 24th August, 1934. The position regarding books and records is discussed in section 6of this report. 4. CONSTITUTION OF COMPANY. A. Registration. The company was registered as a public company on 14th October, 1930, the Memorandum of Association being dated Bth October, 1930. B. Capital. The original capital of the company was £10,000 in £1 shares. The nominal capital was, in December, 1932, increased to £50,000, and in March, 1934, to £100,000, all shares being of £1 each. In all, 21,007 shares have been issued, on which £2,370 14s. is recorded as paid up. The names of past and present shareholders and of their holdings are given in Exhibit " D " appended hereto.

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