MOUNT IDA PASTORAL INVESTMENT COMPANY.

Mount Ida Chronicle, Volume VII, Issue 374, 12 May 1876, Page 3

MOUNT IDA PASTORAL INVESTMENT COMPANY.

ANNUAL MEETING

The annual meeting of shareholders was held at tho company's registered office, Naseby, on Monday evening last, Mr. Newman in the chair, and a full quorum of shareholders.

The minutes of last general meeting, and of the special meeting held to consider a declaration of dividend, were read. The Chairman, in opening tho proceedings, apologised that the meeting had not been sufficiently notified. It had, however, been advertised in the last issue of the ' Mount Ida Chronicle,' and a notice was served upon each shareholder. He would put it to the meeting to consider the notification sufficient. There boin" no objections, ho would proceed to submit the directors' report:— Gentlemen, —We are met again to consider our position, this being the second annual meeting of the Company.

Wo think we have every reason to congratulate the shareholders on the successful results of the business since the company's commencement, and it is gratifying to know that this success is now acknowledged by tl-ose who were previously opposed to our scheme. We will briefly endeavor to make clear to you our financial position, which, happily, is not complicated. We commenced the past year with a balance at the hank of £1971 Os. 2d.; a paid up capital of £14,210; a property, valued at £22,000; and liabilities of £10,640. The re-opening of the share list, twelve months ago, to shareholders only, resulted in 686 shares being applied for and allotted, and which have since been paid up, making the total paid up capital £21,070. On the 20th October last bills, amounting to £5320, were paid off, 135 days before matuiity, for which a rebate of 7 per cent, was allowed, which amounted to £l2O 16s. 4d. This reduced our liabilities to £5320. The liability has been further reduced by £3600 since the 3id of March, when the balance sheet was made up, so that the only liability now standing against the Company is £1720, which is not due until the 3rd of March, 1577. The balance sheet is made up to the 3rd of March, and requires but little explanation. It shows the amount of unallotted shares held by the Company to be 393, representing £3930. Tho Directors deem it unadvisable to offer these for sale, except an opportunity should occur to purchase more property. The Directors have had the whole of the Company's property valued, which is clearly explained in the balance sheet submitted. The high value put on the run, stock, buildings, and fencing by the valuators, who are also the inspectors, shows that the run is stocked with a valuable class of sheep, and that the improvements are replete, and in excellent order. The profit and loss account shows the gross receipts and expenditure for the past year, and the amount proposed for dividend, which, as you are aware, has since been paid, and about which so much has been said for and against. It has been suggested that a reserve fund should be started, but the Directors deem it advisable to leave that matter in the hands of the shareholders. At this meeting you will have to elect two directors in the place of Messrs. Barron and Hewitt, and two auditors in the place of Messrs. Grumitt and Wilson. The above gentlemen are eligible for re-cleDtion. As a matter of form, to invite discussion, he would move the adoption of the report.

In reply to a question, the Chairman said there was no special report submitted by the auditors. It was not usual unless they had some suggestion to make. The printed report was a copy of the signed report in the hands of the Secretary, which had been already circulated. Mr. H. W. Robinson seconded the adoption of the report, which was carried unanimously. _ A special resolution had been given notice of by Mr. Nkwjian, proposing to al ter the date of the annual meeting from Ist May to 30th March. This motion was, by leave, withdrawn. DIRECTORS. _ The Chairman intimated that he had given notice of his intention to propose Mr. Henry Wirgman Robinson as a Director. Mr. Moore had much pleasure in taking up the Chairman's nomination. Mr. Grose seconded th« nomination. Mr. Jackson proposed, and Mr. Law seconded—Mr. S. Hewitt. Mr. Oliver proposed, and Mr. Hewitt seconded—Mr. Barron. There being no other nominations, Messrs. Young and Johnstone were appointed Scrutineers, and a ballot was taken, the result being—Mr. Robinson, 405; Mr. Hewitt, 313; Mr. Barron, 137. Messrs. Robinson and Hewitt were therefore declared elected. Mr. Robinson thanked the shareholders for the honor conferred upon him. The remuneration of the Directors was fixed at £4 4s. each for the year. auditors. MrEoßiNsoN proposed, and Mr Oliver seconded, the resolution—That Messrs. Grumitt and Wilson be reappointed auditors, with their consent. There being no other nomination the resolution was declared carried.

Mr Barron proposed—That the remuneration of the auditors should be £lO 10s. Mr. Grose seconded the resolution, which was carried. RESERVE FUND. The Chairman alluded to the suggestion in the report of the proposed reserve fund recommended for consideration. After reading the clause in the Act, he observed that, as there would be no money in hand for a considerable time, he thought it would be sufficient if the shareholders would keep the question in mind. Mr. James Brown : Is the position of the company such as to require such a reservation ? The Chairman : It had been suggested to the directors. As a body they had not endorsed the suggestion, but had introduced it into the report to open discussion. Mr. James Brown had been given to understand that the position of the company was on a very safe footing, and that they had funds at their command. The Chairman : They have £2OO cash. A reserve fund means, I suppose, putting so much a year past, so as, at the end of the term, to pay back to the shareholders the amount of their shares. Mr. Eobinson said: Ho thought it might be well for the members present to carry the idea away with them. For that reason he was glad that the mntter had been referred to in the report. They had invested in a property held on a lease—an annual depreciation in value might therefore be anticipated; at lead, every year passed meant one year less of a lease. The benefii of a reserve fund had been spoken of of late, It was thought it might be wanted. It was provided by the Act that so dividends should be paid except .out of profits ; it was necessary, there-

fore, to take care that the capital cf the company (£21,000) was always repre sented. With a reserve they would be able to equalise a dividend, and draw upon such reserve when the actual profits for the year could show no such return. It.would also be.guarding against a forced sale at the end of the lease. j At tho expiration of the term itwas reasonably to be expected that, by a mode of manage ment adopted, there might boa very considerable increase in the value of the stock, but that increase could not be depended upon, and shareholders should bear thisiin mind, incase the directors should think it necessary to recommend a reserve fund. Of course he did not say there was any such intention. It would convey an impression that a reasonable idea of prudence was being carried into the management of the Company.

Mr. Brown said: His idea, when he asked the question, was to get out an explanation. Ho had thought the reserve fund would be something similar to what Mr. Robinson had explained. The Chairman said : At the end of the lease the Company may not beable to secure a renewal. At the same time they might be able to secure others. The Company ought, however, to look beforehand.

Mr. Brown proposed a vote of thanks to the Chairman. Seconded by Mr. Jackson, and carried.