ROSS GOLDFIELDS, LTD.

Dominion, Volume 4, Issue 982, 24 November 1910, Page 8

ROSS GOLDFIELDS, LTD.

LIQUIDATOR'S REPORT.

Mr. H. D. Vickery, liquidator of the Boss Goldficlfte Company, has issued a report to contributing shareholders. Mr. Vickery goes very fully into the formation and general history of the company, and there are also reports from tho mine manager and 'managing engineer. Dealing with what has been done during liquidation, the liquidator ;sa-ys that he has had brought to tho surface such portion of the plant underground as could readily be taken out, and tho mine was allowed to become again flooded. To have kept it unwater«l meant an expenditure of some £70 a week, and he did not feel justified in thus committing shareholders.. The company's officials 6tate that very little harm will be done by keeping tho mine full of water, and that it can readily bo unwatered.

With respect to finances, the liquidator James Trent, at a meeting of shareholders, offered to' find £5000"to be used in, paying off liabilities and financing the company during liquidation; he to be given a mortgage over the whole of tho compauy's assets. At a meeting of shareholders held in Wellington on September 22, a resolution (without notice) was carried instructing the liquidator to give this mortgage. On getting in touch with Mr. Trent I learnt from him that the mortgage must contain conditions empowering him to state where the board of directors should be, the locality of tho registered office, and permitting him to approve the directors (provisional)." Mr. Vickery did not think that ho should take away righto of shareholders in this manner. Mr. Trent's offer was consequently declined. The scheme of reconstruction submitted by the liquidator is set forth in {he following clauses:— 1. That a company-bo formed (Ross Goldfields Reconstructed. Limited)with a capital of .£BO,OOO in. 80,000 shares .of £1 each; 70,000 shares to be issuedj and 10,000 held in re-, serve. .

. 2. That the whole of the assets and undertaking of Eoes Goldfields Limited be sold to tho reconstructed company.

' 3. That the reconstructed' company pay, | discharge, and satisfy all the deVs. contracts, and liabilities of'.Eoss Goldfields Limited, including all costs and expenses incidental to winding up, and aleo all costs relative to the incorporation of the reconstructed company.. 4. That the consideration for the sale be the allotment to every member of Ross Goldfields Limited-(or to his nominee) one 6hare of £1 each in Eoss Goldfields Reconstructed Limited credited as paid up to twelve shillings and sixpence per share, for every share held by him in Ross Goldfields Limited. . 5. That the reconstructed company shall not bo bound to allot any shares under the last preceding paragraph unless the member entitled thereunder, within three weens, from a date-to be fixed by the liquidator, by notice in writing to the liquidator claims his allotment, and at the same time pays the sum of 2s. per share on account of the liability- thereon; and in view of this provision the liquidator shall within seven days from the date aforesaid give to each member of the. present company notice of-tho provisions.in this clause and of his rights thereunder, and such notice shall be given by circular letter sent through the post and addressed to the member at his registered- address.

. ,6. That the liquidator shall use his bc6t endeavours to sell' ■ all unclaimed .shares, as and when he thinks fit (by private sale, tender, or public auction), and shall.divide tho net proceeds of such sale rateably among the non-claiming members of Ross Goldfields Limited, and tho-new company shall, on tho nomination of-the liquidator, allot to the purchaser, or purchasers the shares sold to them credited as paid up to the extent aforesaid.. Provided that, any such nomination mu3t ,bo made within four months after the'incorporation of the reconstructed company. In this clause, "unclaimed shares" means any shares in.the new company which members of the present company though entitled, omit to claim , within the 'period aforesaid. •. \

This will provide a working capital far tho new company (after payment of existing liabilities), of say, £21,000. I suggest 2s. per share be payable on acceptance of 6hares, and-the -balance as required in calls not exceeding Is. »er share.-