The Inangahua Times. PUBLISHED TRI-WEEKLY. FRIDAY, JUNE 4, 1886.

Inangahua Times, Volume XI, Issue 1713, 4 June 1886, Page 2

The Inangahua Times. PUBLISHED TRI-WEEKLY. FRIDAY, JUNE 4, 1886.

The " Mining Companies Act," introduced at the present session by the Hon. the Minister of Mines, proposes many important alteiations. The Act contains 150 clauses, and consolidates and amends the law relating to the incorporation and winding up of mining companies generally. The following is a brief sdmraary of its provisions:— The Act extends and applies only to companies formed or to be fotmcd for mining purposes; but mining partnerships may exist without being registered. The term " mining purposes," about which so much doubt existed uuder the old Act, is fully defined. The word "Court" whereever used throughout the Act, is defined as meaning the Supreme Court. When two thirds of the shares in a company are subscribed for, registration may be applied for to tie , Registrar of the Supreme Court ! appointed to grant same, the formalities being the same as in the old Act. Clauses 9 to 16 referring to the registered office of the Company, service of legal piocesses, the power to make rules, general and extraordinary meetings and voting by proxy are a reprint of the existing statute. Clauses 17 and 18 referring to the election of directors are substantially the same. Clause 19 however provides that "none of such directors shall be, or continue to be, directors of any company or companies which may be engaged in litigation with the company of which they were first appointed directors." Persons holding office or place of profit, or in the employment for valuable consideration, or concerned in or participating in the profits of any contract with the company, (directors remuneration ex. cepted) shall not be competent to sit as directors. One week before a general meeting a full statement of assets and liabilities to be lodged in the office of the company for the inspection of the shareholders. Clauses 22 to 26 relating to the appointment, removal, and duties of manager, are unchanged. By clause 27 the manager is required, six months after the .company ceasing to carry on business, without being wound up to lodge the I books &c, with the registrar, but the period may be extended upon appli* cation showing cause. Half-yearly statements to be prepared seven days piior to general meeting, and printed copy served upon the Registrar. Books and accounts to be open for inspection to creditors and shareholders during office hours upon the payment of a fee of 1/-. Managers to furnish written statements of accounts extending over three months to shareholders requiring same, upon payment of a fee of 10/. Books, not to be liable to seizure under process of any Court. Half-yearly statements of account to be prepared in January and June, and published in Gazette and local paper. Neglect of this provision to render each director and manager liable to a penalty of £5 per day for every day during default, to be recoverable upon the information of any ! person. Section 45 provides that " any transferee of a share who shall, after the lapse of two months from the execution of the transfer to him of such share, neglect to deposit the same with the manager, for the purpose of registration, shall be liable to a penalty cf _10." Blank forms of transfer are prohibited. Calls to be advertised twice, and to be a debt due to the company when made, and proceedings for recovery to be taken within fourteen days from the payable date. When one»third of the shares in a company are forfeited an extraordinary meeting to be convened hy the directors or manager, the notice convening such meeting to set forth the names of the shareholders who have forfeited, to- j gether with the number of shares held ! by each. Section 20 provides that i dividends shall only be paid out ofthe profits arising. Directors paying dividends otherwise to be personally liable. Part II of the Act refers to wind- 1 ing-up proceedings. Companies failing to take bona fide steps towards the commencement of business within six months of the date of incorporation | may be wound up, or by the suspension j of business for a year. Section 116 gives thp Supreme Court power to refer winding up proceedings to District Courts if considered advisable In other respects, the winding up proceedings are similar to those contained in the existing Act. Al! the provisions as to prepayment and noliability companies are re-enacted. Part V provides that no company shall be registered under a name identical with that of an existing Company, or so nearly resembling it as to be calculated to mislead. Clause 129 makes it a misdemeanor liable to twelve months imprisonment for a manager to wilfully neglect to enter in the register any transfer ; or make any false entry of such transfer; or for making any false entry or st.atatetnent in any accounts which he is directed to keep ; or insert any false matter whatsoever in any statement ofthe affair . of the company which he 's required to publish; or fail to hand over books to liquidator duly appoin* ted ; or neglect at, the expiration of six months from a company ceasing business to hand over the books to the liquidator. Man .gers are marie liable to a penalty of £10 in each of the fol lowing ras'-s .—-For failing to lodge the required notices referring to the registered oflice, appoint merit of manager; or to publish copies thereof ; for failing to keep accounts as required ; for refusing to allow persons entitled to inspect the books ; or failing to furnish

statements of account as required. Directors omitting to make the required reports in statements, or making false statements to be liable to a penalty not exceeding £50. It is made a mis « j demeanor for a liquidator to make false returns, and a similar offence for any person to falsify any book or account, sign any statement or memorial knowing the same to be untrue ; or for forging, uttering, or offering to dispose of any scrip certificate ; or for personating the owner of a share, the penalty in each case being twelve mot* ths' imprisonment. Companies regi tered under the Act of 1872 to he subject to the provisions of this Act, all preceding Acts being repealed.