SHARE CAPITAL.

Manawatu Standard, Volume LX, Issue 251, 20 September 1940, Page 10

SHARE CAPITAL.

DAIRY COMPANIES’ POSITION.

Replying to an enquiry relating to share capital o£ dairy companies, a letter was received from Sir Francis Frazer, de-puty-chairman of the Executive Commission of Agriculture, giving an outline of the present position, at the monthly meeting of the Manawatu and West Coast Dairy Association yesterday. The regulation covering the matter was as follows: —“Except with the consent of the Minister, no company or person acting for or on behalf of a company shall increase the nominal capital of the company or make a call upon shares issued by the company.” l'he letter continued: “I have ascertained that it is not intended to, place any obstacle in the way of the normal procedure of dairy companies in the matter of issuing shares or making calls thereon; but it is necessary for every dairy company to make formal application to the Minister of Finance for authority to proceed with the usual allotment of shares, and to. set out its procedure for payment of calls by deductions from butterfac payments or otherwise.

“In view of the foregoing, the agreement made between the Manawatu dairy companies on July 7, 1937, (as to zoning of supply arid changing from one factory to another after August 1) is not affected by the present regulations. In so far, however, as cheese factories are concerned, it is not desired that they should require shares to be taken up by suppliers who are temporarily transferred from butler manufacturing companies on the understanding that the suppliers in question remain shareholders of their present companies.”