"FIAT LUX" REPLIES TO CORRESPONDENTS

NZ Truth, Issue 1238, 22 August 1929, Page 20

"FIAT LUX" REPLIES TO CORRESPONDENTS

"Caution":' Consider the industry al most unstable one since it Is governed by world-wide conditions of which local y i we can know but little. Personally would not invest twopence m the shares. "Optimist": Do not recommend either investment you refer to. The former will | take far too long to mature, whilst, the latter will probably come into production on an already -glutted market with | consequent fall m prices below production costs. "Seeker": Your first inquiry was fully answered m our issue of August 15, 1929. Your second inquiry is a difficult one. ii you are already m, then carry on; if you are not m, but can afford to let your money lie for years In the hope of ultimately getting a return, then go m but if you want a definite and regular return on your money and little or no capital risk do not go m. "Sun" (Waikato) wants to know whether he can demand a copy of the annual accounts from a company m which he is a shareholder. - Though it may seem more than passing strange, there is no provision m the Companies Act, 1908, requiring directors to furnish shareholders with copies of annual accounts nor yet is there provision for Shareholders viewing same.

The Act itself, merely contemplates the reading of such accounts together with : the auditors' report at the annual meetI ing and actually does not make even this mandatory. . Consequently, any rights the shareholders may have m this connection, are those specifically provided m each company's articles of association to which every shareholder is entitled to a copy. There are several public companies operating m the Dominion to-day whose articles forbid the issue of accounts and all such companies are rigorously excluded from listing on the • Stock Exchanges, consequently it is mostly a difficult thing to sell such shares as the market is usually restricted to those who "know something." Under these circumstances hearsay only is at the back of this writer's opinion that "Sun" should get out and stay out. "Safety" (Invercargill) : Cannot recommend the so-called investment. The industry is m very poor shape, indeed, and world-market prospects extremely gloomy. One concern, of 30 years' standing paid 3 per cent, for last year and will be lucky if it pays anything at all this year. Better buy some real investments , of which many have been named m recent issues. *