Manawatu Farmers' Co-operative Association.

Feilding Star, Volume XVII, Issue 78, 28 September 1895, Page 2

Manawatu Farmers' Co-operative Association.

«, _ — • j A meeting of shareholders of the M.F.C.A. was held at Palmerston on Wednesday last for the purpose of considering the proposal to amalgamate with the United Farmers' Alliance. There was a good attendance, and the managing directar, Mr M. Cohen, presided. The following resume of the agreement entered into between the directors of the two companies as to the basis of amalgamation was given by Mr Cohen, managing director : — l. Agreement is conditional upon both companies passing and confirming resolutions re amalgamation. 2. New companies take over all the assets of the old companies, and discbarges all the liabilities of the old companies. 3. The assets of each company are to valued by competent exverts. That is to say: — Stocks — Each department will be valued by different experts to see prices are right, and that the condition and fashion, &c, is good. Land and buildings— Will be valued by men who make a specialty of such business. Book debts — Each company guarantees its book debts. To give effect to this they will be taken as they stood on the 31st August last, subject to a valuation to be taken on the Ist January, 1896. Funds to be held in hand by each company to meet any possible deficiency. 4. Goodwill uot to be taken into consideration. 5. Any surplus funds in hand after providing for liabilities ancl contingencies may be distributed pro rata among the shareholders, or added to their paid up capital. 6. Experts are to be appointed by mutual agreement. In case of any dispute arbitration is provided for under Act of 1890. 7. It is arranged for two M.F.C. A. directors to retire and four United directors to be appointed, always provided such of the latter duly qualify for directors, thus giving equal representation to both companies. 8. Shares in the new company will be issued to each present company for such an amount as the valuation proves each such company is entitled. These will be allotted to the members of each company pro rata with their present holding, so that each member will ultimately hold as many shares in new company as he now holds in the old companies. The paid up capital will be determined by the valuation. 9. Each company pays half the cost of amalgamation expenses whether it is effected or not. The resolutions, declaring in favour of amalgamation, changing the name of the Association to that of " The United Farmers' Co-operative Association, Limited," and making consequential amendments in the Articles of Association were carried unanimously. —Standard.