No 2 Westland Industrial Building- Society.

Hokitika Guardian, 24 May 1921, Page 1

No 2 Westland Industrial Building- Society.

SPECIAL GENERAL MEETING

A special general meeting of shareholders of the No 2 Westland Building Society was held last evening at the Secretary’s office. Hon H. L. Michel, (Chairman of Directors) presided, nil the directors (except Mr I). J. Evans, whose absence was apologised for) and a number of shareholders being present. The minutes were confirmed. The Chairman outlined the business of the meeting set out in the following circulars which were read:— CIRCULAR.

At a special meeting of the Directors held on the 7th. inst to consider the Society's position n regard to its future operations, the question of continuing with the present few shareholders was carefully gone into. Figures submitted by the Secretary reveal the following facts.

(1) The total number of live shares that as yet have not had a draw is 31 in 14 groups on which there has been paid in subscriptions a- sum of £1309/4/-.

(2) The total number of shares held on which loans have been made and are current is 10, tlieir fortnightly payments amounting to £ls/8/4. This amount plus £3/2 1- fortnightly subscriptions makes the total revenue £lB/10/4. (3) From above figures it will l>e seen that the Society has now reacned a stage when its great usefulness has ceased to be operative and as in the case of the No 1 Society would be better wound up, the existing subscribing shareholders being repaid the whole of the su'bscriptons in full and the amount to credit Profit and Loss being distributed equally among them. (4) The balance at credit Profit and Loss is £6BB having gone back £33 since July 1918, thus showing that to continue the Society on its present limited revenue will mean the eventual swallowing up of all the profits in doing so. (5) Tf shareholders are unanimous in winding up it is proposed to Itallot for the order in which they be paid out. and as the Society has now close on £6OO in hand this means that nearly one half of the shareholders will obtain their money almost immediately. The remainder as rapidly as the repayment monies then come in. Following this there will be a distribution of the profits. Tf agreeable to the winding up of the Society please sign attached authorin' and return to us.

As a result of the special circular sent to all shareholders of the Society on 23rd April ail almost unanimous response has been received from them consenting to the proposal outlined therein to terminate the Society and in accordance with Rule 150. Aon arc therefore asked to attend a special meeting of shareholders to be hold at the registered office of the Society on Monday evening 23rd inst at 7.30 p.m. to pass a special resolution giving effect to the termination proposed. Trusting you will make it convenient to attend at the appointed hour.

The Chairman said he would like to refer briefly to the work ol the Sloei’etv. It was formed in August, 1904, with 501 shareholders and since its incorporation had made loans to shareholders of £14300. The total re payments had been £10,393, and subscriptions £9014. It would thus be seen that the Society had done good work and provided a. lot of cheap money.

In later years the operations of the Society had been very much restricted. Firstly on account of the fact that at any time in the career of the Society it was open to shareholders to withdraw their subscription payments and secondly the war period had made it very hard for shareholders having loans to keep up the repayments as punctually as was desired. It was however remarkable that to date no bad debts or losses on advances made had occurred—notwithstanding a depression. All classes of the community had derived some benefit and personally ho was delighted at the result. The position was very clearly set out in the Circular to shareholders on the 22nd. April and the Directors after most careful consideration were unanimously of the opinion that to prolong the life of the Society would mean no direct result to those remaining and further would eat up the profit now earned and which would be available for those shareholders who had not received a draw. At this date there were now 28 live shares hold by 11 shareholders on which there was paid £1197 16s.

The total number of shares on wh oh loans were made and current was 16 on which there was due to the Society £1430 17s 2d. There were 50 shares that would thus participate in the accumulated profit. At dato the amount was £6BB. He suggested that if the resolution to dissolve or wind up is carried a sum of £l3O he held in reserve to meet any deficiency in the final winding up and oSscs on advances and liquidation expenses. The proposal to wind up had received practically unanimous approval of tl o shareholders. He would now open ‘lie meeting to discussion. In reply to Air C. Evans the Secretary stated that more than the necessary quota required by the rules bad signed the consent to wind up. Mr Schroder asked if shareholders who had received a bonus, would sin t e in the distributon of profits with those who had not drawn. For instance he had 0 shares and never had a draw. It seemed to him unfair if others got profit on top of the loans held by them. The Chairman pointed out that it was unfortunate Air Schroder had noli been

lucky enough to draw but he was like many others present. It was a gamble.

Dr. Teichelmann differed with the Chairman. It was not in his opinion a gamble. They unitedly established Hus fund for their own benefit and had all continued paying up as they started off, it was inevitable all would get a diaw in due time.

Air H. Jones said he sympathised with Mr Schroder. He too had been paying in since the beginning and had not "ot a draw—however he would be quite” glad to get his mortey hack plus £lO per share as profit on same. He recognised that though ho had not had a draw, lie always had the chance of getting one in the various ballots. Mr D. Stuart agreed with Mr Jore* he thought they should take into consideration the fact that all these years they had the chance of a draw. To continue now would mean eating up the o refits earned.

Mr C. Evans said he thought the shareholders who had not drawn should not forget that they got 2% for their money as well as the chance. It was pointed out afterwards that the rate of interest was well over 3%. Mr Sellers pointed out that before any distribution could take place they wouTd need the signatures to the Deed of dissolution. Air J. J. Breeze, remarked that he was more than pleased with the icsults. The profit per share was much in excess of that distributed by the No 1. Society. Air J. Stapleton concurrred. He had not had a draw hut recognised he had his chances and was satisfied with the £lO per share profit. In thanking members for the discussion Air Michel moved the formal resolution: — “That this Society hereby dissolves and. that the necessary deed of dissol ition lie prepared and the signatures of the shareholders be obtained forthwith to same.” Seconded by Air H. Jones and carried unanimously.

Air H. Jones moved that the Secretary be appointed Liquidator at a fee of £6O and that the Directors he appointed to act in conjunction with him at a foe ol £3 3s each. Seconded by Air Pfahlert an I unanimously carried.

In reply to the Chairman the Secretary stated in his opinion it would take at least 2 years, probably more, to complete t he winding up. IVith regard to the funds now teady for distribution it was decided to ballot this week for tlio order in which those shareholders entitled to same should bo paid. A vote of thanks to the Chairman terminated a very successful mee'iing.