DIRECTORS' FEES

Dominion, Volume 10, Issue 2917, 1 November 1916, Page 8

DIRECTORS' FEES

AND IHIS WELLINGTON WOOLLEN COMPANY The matter of increasing the fees of tho directors of the Wellington Woollen Company was referred to at the annual meeting of that company, when it was stated that means would bo taken to make tho increaso legally possible. This took tho farm of an extraordinary general meeting of shareholders, held yesterday afternoon, for tho purposes of altering the Articles of Association.

The chairihan (Jlr. W. 11. P. Barber) explained that tho meoting had been called in fiecordanco with a fitatemcnt mado nt the last annual meeting of the company, when the direotors announced that it was advisable to call an extraordinary meeting of tho shareholders for the purpose of altering tho Articles of Association. Tho Articles had been drafted many years ago. Certain alterations had taken'placo in the procedure, and it was wise that the Articles should be brought up to date. It was gratifying to the directors to know that tho proposed alterations had boon received in such a satisfactory manner. Quito a number of proxies had been sent in approving tho alterations. Certain additional minor amendments had been suggested by Mr. TieicJ, and theso had been agreed to J>y the directors. Tho meeting them dealt with the alterations seriatim. Mostly they were machinery amendments of no public interest, and were passed without discussion, Ono of them provided for the closing of tho financial year to bo altered to June 80, instead of July 31; the amendments being necessary for seasons' trades purposes.

.One amendment read"That article Ivo. 72 bo altered- to read as follows;— 'Tli s sum of .£llsO per annum or such further sum as.tho shareholders in genoral meeting shall from time to time determine shall be appropriated out of revenuo for remuneration of tho directors, to bo divided between tliem in such manner as they shall think fit. This article shall be deemed to h.tvo been in i'orco tiiko effect as from July 31,

Tho amendment altered the directors' honoraria. The chairman at the last annual meeting mentioned that as the nffairs of the company had grown so largely the remuneration fixed thirteen years ago, when the company's operations were .but one-fourth of the present d a T, was not now adequato for tho responsibility attaching to so considerable an institution, nor for tho timo devoted to the company's business. The alteration, it was explained, was made retrospective to cover last y?ar's work, which was particularly onerous. ■ Tho directors, at the annual meeting, intimated that they would prefer not to accept additional remuneration by way of bonus. <iml l "' ] l cai ' ce moret ' as an amendment: That the matter of increasing tho honorarium of the directors bo not considered until after the war and until six months after peace is declared." In doing so lie said hp took it for granted that the honorarium might have been small for the amount of work done, and he had no wish to be antagonistic to tho directors. He thought, however, that the present was not an opportuno time for making an increase of practically 100 per cent. If the company was making such large sums of money he would liko to seo thnt monoy handed over for tho relief of distress. Some few months ago the operatives had' asked for a 10 per cent increase, but the directors had opposed it and had brought about a strike which had resulted in a. considerable loss to the company. Now they were askin£ for the Tory thine "they had refused the • operatives, and ho could not sco where tho consistency camo in. Tho amendment was seconded pro forma by Mr. A. D. Crawford. , J^ r ; r ® al ' l ! or > in replying, said it was doubtful whether New Zealand was feelM|» any particular, distress at the present time. In fact, if it were not for lii. newspapers wo would hardly know that there was a war on. ?^X rco: I referred to distress outside of New Zealand. Mr. Barber continued that' if there wero any distress, then the directors should have the privilego of saying how Y. le , money they had earned was to be distributed. He would Teraiud them that, the company had contributed ,£9300 by excess profit tax, ordinary tax, and other contributions. If tho directors had granted the 10 per cent, bonus asked for by the operatives it would have placed the company at a competitive disadvantage as compared with the other companies, which were paying only a a per cent, increase.

Pearce said he had no wish to oppose the increase, but i» as the present the proper time for tho change? 'V 1 ® amondn ?™t ps lost, the move. the COnder on,jr for ;t - and the article was passed as originally nmended, and authorosing the increase.