LOAN AND INVESTMENT COMPANY.

Globe, Volume VIII, Issue 1074, 6 December 1877, Page 2

LOAN AND INVESTMENT COMPANY.

A general meeting of the Loan and Investment Company of New Zealand (Limited) was held at 3 p.m. yesterday, at Mr Charles Clark’s rooms, Mr J. Inglis, chairman of the Board of Directors, in the chair. There waa a large attendance of shareholders. The Chairman said the meeting had been called in accordance with a circular which had been issued on 15th November last, to consider the business therein stated. As every person present had a copy of the report, he would, if not objected to, allow the report to be taken ns read. The following is the report:— The meeting has been fixed for sth December in order to allow time for the circulation of this notice, report, and balance sheet, for the information of distant shareholders. Commend eg the year with a profit balance of .=£6ll Us lOd, afterpayment of the preliminary expenses (being =£3ll) 9s lOd, loss .£250 then behi in suspense on account of English expenses), the accounts now show an available balance of £IB7O 2s 7d, after payment of all English and colonial expenses. The English capitalists, with whom the representative of this company was in communication, desiring to undertake a mercantile agency business in addition to the mortgage business for which this company was instituted, the directors determined to take ao part in the formation of the National Mortgage and Agency Company of New Zealand, Limited, which was the outcome, of the negociation; they have, however, undertaken to recommend to the shareholders the proposition of the National Company to purchase the business and securities of this company upon the basis of a bonus of £IOOO, in addition to the amount of the securities and accrued interest —settlement to be in cash, but the agent of tbe National Company will recommend to the London directors to issue any shares that may be applied for by members of this company, to the extent of then- present holdings, out of any future issue and subject to tbe usual regulations of that company. In order to enable the shareholders to deal with the proposition, notice of the beforenamed resolutions is given, and, if the same be passed, it is estimated that the paid-up capital will bo returned, with a bonus of about II per cent. If the proposition of the National Company be not accepted, the shareholders will be asked to sanction a dividend, retaining a portion of the profits in reserve. Notwithstanding the payment of the English expenses, the profits of the year show about 71 per cent, upon capital, and, upon the present scale of expenses, the company is earning between 8 atid 9 percent, net. In consequence of the gradual payment of calls, the first financial period of the company comprehended an average employment of capital for about eight mouths only; at the close of this, the ensuing year, the directors have pleasure in submitting so satisfactory a statement as is exhibited "by the balance-sheet and report, and in asking the decision of the shareholders upon the proposal of the National Company. Hie directors have not made, and do not propose, any provision for the remuneration of their own services. The balance-sheet to 81st Qctober showed the amount of capital paid-up on shares, lesg unpaid calls, to be £24,718 15s ; deposits a( interest, £17,432 12s (id ; rent of premises accrued, £l3 19s 7d; bank overdraft, £l7O 8s 4d; balance (profit and loss account), 61870 2s 7d. Total, £44,205 Bs. The assets vere as follows :—Loans secured on mortgage, £42,171 10s ; furniture, £100; amounts re-deposited at interest, £BOO ; interest iccrued, £1133 ISs. The Chairman referred to the offer of the National Company, as shown in the report, md said that although the directors held the lower under the articles of association to sell, hey desired, before taking that step, to have heir hands strengthened by the opinion of ho shareholders. If any information wag te sired in addition to what was contained in ho report, he would be vei y happy to givo t. lll> would now move the adoption o* tbs ;epojrl and

Mr Cuff seconded the adoption of tho report, which was carried unanimously. The Chairman said that, whether the company were wound up or not, the necessary steps would have to be taken to keep it in existence pending the final dissolution of the company. The next business would then be the election of three directors in place of Messrs J. Ingles, Gf. GK Stead, and 0. W. Turner, who retired in accordance with clause 72 of the articles, and who had offered themselves for re-election. As no other gentlemen had been nominated, perhaps some shareholder would move their re-election.

On the motion of Mr Cowlishaw, seconded by Mr Collins, the gentlemen named were reelected directors.

On the motion of Mr Cuff, seconded by Mr Carruthers, Messrs D. Craig and J. D. Macpherson were re-elected auditors. The Chairman said the next business would be the resolution respecting the proposal of the National Co. The directors, before closing with the proposal, had thought it desirable that their hands should be strengthened by the resolution on the business paper being passed by the shareholders. The directors had carefully considered the matter, and as the other company had made a start here and intended extending their business, and as they (the Investment Company) had not succeeded as expected in obtaining shareholders in England, and their funds being limited it was thought the company could hardly succeed, and the directors had come to the conclusion that it would be desirable to accept the offer made to them by the National Company. Mr Helmore moved—“ That the directors of the company be requested to accept the proposal of the National Mortgage and Agency Company of New Zealand (limited), and to effect the transfer of the securities as speedily as possible.” Mr Carruthers seconded the motion.

In reply to Mr Nathan, the Chairman said the National Company would take over the assets from October 31st and pay 7 per cent, interest from that date, besides the bonus of £IOOO. That company proposed to pay the money in six weeks from the Ist December, but if the transaction were not completed by that date they would pay interest until the money was paid. In reply to a shareholder, the Chairman said the directors would take care there was no unnecessary delay in the matter being settled. It might be necessary that the time should be extended a few more days beyond the six weeks to complete the transaction. The resolution was then put and carried unanimously. The Chairman said the next business would be the special resolution shown on the business paper in the hands of the shareholders. If this resolution were passed it would have to be confirmed at another meeting to be held on the 9th of January next. Mr Ross moved the resolution, as follows: —“That the company be wound up voluntarily, and that the following persons be appointed liquidators, viz., Messrs Peter Cunningham, John Inglis, Edward Cephas John Stevens, Q-eorge Gatonby Stead, Charles Wesley Turner, Robert Wilkin, and Edward Q-eorge Wright.” Mr Cowlishaw seconded the resolution.

Mr Nathan asked whether the winding up of the company would not be trammelled by having so many liquidators ? The Chairman read a clause from the Joint Stock Companies Act, showing that matters would be better facilitated than otherwise in appointing the number of liquidators named. The directors would deal with the transfer as directors until the resolution was finally passed and the funds paid over. The resolution was put and carried. The Chairman said the shareholders would meet again on the 9th of January to confirm the resolution just passed, and, although it would be holiday time, he hoped they would be able to get a full meeting and close the matter. The directors would of course take all steps necessary to carry out the resolution and save the pockets of the shareholders. A few disbursements would have to be made.

In reply to a shareholder, The Chairman said the directors did not propose to take any fee for their services. Mr Craig expressed regret that the company had not been successful, though this had been no fault of the directors, who had worked hard in the interests of the shareholders, He would move “ That a vote of thanks be passed to the directors for their services during the past year.” Mr Cuff seconded the motion, which was carried unanimously. The Chairman, in returning thanks on behalf of the directors, said he could hardly accept Mr Craig’s view of affairs,—that the company had been unsuccessful,—as but for the £SOO spent in the endeavour to obtain English shareholders and the preliminary expenses which had to be met, there would really have been a dividend. Their’s would be the most successful winding up which had taken place in Christchurch, as no other company had been able to show a bonus of 11 per cent., or, say, a profit of 7 per cent, to shareholders from the time the capital had been employed. He thought that under all the circnmstances this showed a remarkably successful state of things, [Hear, hear.] This concluded the business of the meeting-