WILL CARRY ON

Dominion, Volume 28, Issue 105, 28 January 1935, Page 10

WILL CARRY ON

Debenture-holders’ Decision

TRUST COMPANY’S POSITION

That tbe debenture-holders’ committee should carry on. and Hint a compulsory liquidation should re resisted, was the decision made by Wellington debenture-holders in the It.vestment Executive Trust of New Zealand. Ltd., when they met in the Dominion Farmers’ Institute to discuss their position. The company was one of those investigated by the Royal Commission Steps were taken to estab’k n a fund to defray expenses already incurred, and those that may be incurred in the future. Mr. D. McKenzie presided over an attendance of about 50 debentureholders.

The secretary of tiie committee. Mr 1.. W. Swan, outlined the wo>k winch had been carried out by t!'-‘ commitfee. There were many holder-, he said, who had tiie impression that their shares were more or less valueless and had sought information as to what they would be likely to get out of what they termed "the wreck.” The figures lie had given to an Auckland meeting had proved clearly that that vie* was ab surd.

A poll had been taken in Australia of debenture-holders in tiie South British National Trust, a sister company to the Investment Trust, am' approximately 60 per cent, bad voted for re construction, notwithstanding the fact that the Commissioner (M r Justice Haise Rogers) bad given a "ety strong indication that he preferred liquidation. In liis opinion. Mr s «an said that company had less chance of carrying on satisfactorily than the Investment Executive Trust Comnnny According to figures taken out when lie was in Sydney, it possessed only about £20,000 worth of investment.-:, apart from the Trust Building, as against £147,000 held by tiie Investment Executive Trust.

Mr. Norman Levy, a member ot the committee, said that the committee felt that the issue was overwhelmingly in favour of reconst ruction Recons'ruction was not inspired by McArthur: it originated in tiie committee. The portfolio of assets revealed a sound financial and commercial position ‘Liquidation is not only a suicidal policy but sheer financial and econom'c heresy,” lie said. "In my opinion, we capitalists in New Zealand are steadily digging our own graves, but do not let us debentureholders be the first to be buried.” After a long discussion, 'be meeting decided that the committee as tiie representatives of the debentm-e-nohlers. should carry on the company The de-benture-holders also agreed to a levy of 2d. per debenture and authorised the committee to spend up to 3d per debenture more if necessary.

DUNEDIN MEETING

Trustees Company and McArthur Group

By Telegraph—Press Association. Dunedin. January 27.

Shareholders in the Trustees Executors and Agency Company were required on Friday to vote on a proposal to increase the capital of the company and amend and strengthen the articles of association. It is understood that the purpose of amending the article* is, to meet the possibility of what may be termed the McArthur group securing a dominating number of shares in the company. It is stated that the group has already purchased a large percentage of the shares, but that snl.v n small number so far have been transferred to it. If the voting is favourable to an increase iu capital tiie directors are to have tiie right to discriminate and to say to whom t:ew shares are to be sold. It is stated that two Dunedin solicitors are holding shares in the Trustees Company on behalf of the McArthur group, and that these have now been transferred to them. The Public Trustee is controlling the interests of the debenture-holders iu the McArthur group and, through the two solicitors referred to. is opposing lhe intention of tbe Trustees Company, ns it is contended that the alteration in the artii’les of association and tiie increase it; capital will affect the interests and assets of the debenture-holders in the McArthur .grqtip. '