FOXTON CO-OPERATIVE BUILDING SOCIETY.

Manawatu Herald, Volume XXX, Issue 381, 22 February 1908, Page 3

FOXTON CO-OPERATIVE BUILDING SOCIETY.

Resolution to Wind Up. A general meeting of the above Society was held in the Borough Council Chambers on Thursday last, to consider the question of winding up the Society. Mr Hennessy, the Chairman of Directors, who presided, explained that the reason for adopting this step was the extreme laxity of the sunport given to the Society. Last Saturday night only three members, out of a total membership roll of 79, came to the Society’s office to pay their subscriptions. The Society could not go on that way, and it was in the interests of all that the Society would be wound up at once. If done promptly all financial members would get back what they had paid—or most of it. If it were allowed to drag on further, additional expenses would be incurred and there would not be sufficient funds coming in to pay them. Mr Henderson regretted that such a motion should have come before the Society, and particularly from one of the directors. The reason of the difficulty was that it was hard to get money. It would have been all right if members could have kept up their payments. He did not think it was right that the failure should be blamed upon the shareholders for not paying up their shares. The failure of Foxton was due to want of interest in the place, and he considered that the failure of the Building Society would be a laughing stock all over New Zealand. It was the first Society he had beard of in New Zealand which was a failure.

Mr Stiles said that he, in common with every other member, was very sorry to see the Society fail, but the matter had to be looked at from a business point of view. If it were wound up now, each financial member would stand a chance of getting back his money, but if it were left for another six months, and got no better support, the expenses would by that time swallow up uearly everything, and the shareholders would get only about ios in the £. In winding up now, the directors were studying the interests of the shareholders. He would like to see the Society carried on if possible, but it had had a good trial and a good membership, and had received very little support from the members. The smallness of the present meeting showed how little interest was taken in it. Under the circumstances, the sooner they wound up the better. Mr E. E. Reade said he had been some years in Foxton, and was sorry to find, after Foxton had turned the corner towards advance by starting a Building Society, that the Society was going to join the majority of the defuncts. The Society had started full of vigour, he had done what he could to support it, but as his efforts would uot help it much, he would support the resolution to wind it up. He had formerly hoped the Society would be one which would enable them to say “ Foxton floreat.”

Mr E. Spelraan said he did not think it fair to make any reflections on the management of the Society. Any one who had been long in Foxton would know that it was impossible to run such a Society here. If the mover of the Society had anything to do with Foxton concerns in the past, he would have let the matter fall through. At the request of the Chairman, Mr Moore, the Solicitor for the Society, explained the procedure for winding up a Society provided by the Building Societies Act. On a further question he explained the legal effect of the proposed resolution on the question of winding up.

Mr Stiles proposed—‘ ‘ that this meeting considers it advisable to wind up the Society owing to the lack of support given by the members and the public generally, the date of such winding up to be as from the 29th. of Feb. inst.” This was seconded by Mr Hillary, and carried, with one dissentient.

Questions were asked as to whether uufinancial members would have the right to a word on the question of winding up, or taking part in the division of the Society’s funds. Mr Alex. Ross proposed that Mr Moore be appointed the sole trustee, for the Society in connection with the winding up proceedings. Mr Moore replied that as solicitor for the Society he did not think it would be proper for him to act as trustee, and suggested that it would not be possible to get a better trustee than the chair? man of Directors, Mr Hennessy. Mr Hennessy said he would be willing to take on this duty as a final service to the Society if desired and would continue, as he had done from the first, to see that the Society’s interests were safeguarded in every way. Mr Ross accordingly proposed and Mr LE. Reade seconded the appointment of Mr Hennessy as trustee, and the proposal was carried unanimously.

Mr S. Read asked what the position would be if a sufficient number of members declined to sign the deed of dissolution of the Society ; would the Society have to drag on its present unhappy existence. Mr Moore explained if such an unlucky contingency happened application could be made to the Court to wind the institution up. Mr Henderson asked what had been done in respect to the Secretary’s salary. The Chairman explained that the directors had considered the matter and found that there was not sufficient funds to pay

him. This announcement seemed to sweep away the last doubts in the minds of these present as to the advisability of terminating the Society.