TIMARU BUILDING SOCIETY.

South Canterbury Times, Issue 2214, 22 April 1880, Page 2

TIMARU BUILDING SOCIETY.

T! 10 adjourned annual meeting' of the Timarp Permanent Benefit Building and Investment Society was bold last evening in the Foresters’ Hal). Between 50 and (50 shareholders were present. Ca])tain Sutler (Chairman of Directors presided. The report and financial statement for the year ending Feb. 20 wore submitted as follows : —ln presenting the tenth animal report of the Society the Directors regret to state that its progress has sustained a severe check, in consequence of the financial depression from which the (Jistripfc has suffered ip Die past year. The sunt of £20,5(58 has been paid iti reduct-iop of deposits, debentures, and investing shares. Tlje number of members applying to withdraw has been so groat that it lias been found impossible to meet their demands, while the yearly income of the Society has been - 'reduced £3,300, from the cessation of subscriptions by members who have given notice of withdrawal, The profit for last year has, nevertheless, been f. 298 18s 3d larger than the previous year; tiio amount parried forward to credit of the Society being £1,500 5s hd, The Directors have further to state that no loss has been sustained during the past year and they consider the value g£ (ip securities sufficient to protect the Society loss. The Financial statement shews: —

year from £2lOl Os llcl to £197 18s Bd. The Auditors,Messrs C. S. Fraser and M. White certified as follows :—“ We have examined the books, deeds, vouchers, and accounts of the Society, and find the same correct, with the exception of the alterations and additions mentioned in our report. Before dealing with the balance sheet it was resolved to dispose of the auditors’ report. The report stated that several rules had not been strictly adhered to by the directors. Among these was mentioned rule 29, which provides that surplus profits shall he apportioned only on the certificate of an actuary or two competent shareholders ; rule 17 referring to the qualification of directors, and rule 10, providing under a penalty that subscriptions must be paid into the Bank by the receiving director. The auditors also complained that while the directors fees had been punctually paid, no penalties had been imposed for nonattendance. and that the directors had illegally voted themselves £8

8s for examining the hooks of the Association. It was alleged that rule 1(J, which provides that investing shareholders giving notice of withdrawal shall ho paid in rotation according to priority of notice, had boon infringed, and that three of the Directors had received a preference over other applicants. The Directors in question had received respectively £IOO, £OOO, and £IOOO, while of two shareholders who had lodged applications for withdrawal before the Directors referred to, one had received half the amount of Ids shares, and the other nothing, though owning investing shares to the amount of £I2OO. The auditors recommend that all deeds of mortgage should he drawn up by a solicitor, as they doubted whether the Society’s title would in all cases prove sufficient in a court of law unless this course was followed.

The Cliairman replied to the various charges of the auditors. With reference to rule 211, he said there was no objection to an actuary’s certificate being obtained if the shareholders wished it, but the eortilicatc would have to he paid for. The hooks had been opened on an imperfect system, and the Directors had hud great difficulty in making up the accounts. A new system was being introduced by which each shareholder would he able to see the state of his account, —tines, payments, and arrears, if any —at a glance. The practice had been to allow shareholders who paid hack to the beginning of the year to participate in the profits, and to allow fines to accumulate till the end of the year before being charged. Mr J. Jackson—ln looking over the end of the list [referring to the lists at the end of the Auditor’s report] I see the Auditors point out that the Society loses £257 odd through the carelessness of the Directors or of the Secretary. I came here to-night, however, prepared to find a great deal more than that. I expeefed to find double that in one item alone. I think we ought to be very grateful to the Auditors for going over the accounts so carefully. Hind though that a great part of the £257 is recoverable. I think (here has been plenty of fines inflicted during these hard times. As regards the deficiencies in the insurances —

Mr Eutherford pointed out that as the clauses of the report were to be taken in order, Mr Jackson was anticipating the business.

The chairman said there was nothing for the Directors to conceal or be ashamed of, and he desired to have every complaint investigated, so that there should he no grumbling hereafter. The Auditors had questioned the qualification of certain Directors on the ground that they hadlodged applications for withdrawals, but he held they were shareholders until their shares were paid, notwithstanding their notice of withdrawal. lie admitted that the remarks concerning Mr Cli If were right, as Mr Cliff had never been an investing shareholder, although he (the chairman) had been led up to the time of Mr Cliff’s bankruptcy to believe otherwise, Mr Uiitherfiml and Mr Mee explained that they had held ;>!) shares between them, and that when they found they were one share short they took up another to complete the qualification.

The Chairman said the deficiency of a single share might be overlooked. Of course the auditors ’were quite right in bringing the matter up. Mr Fraser contended that having given notice of Avithdrawal they were not qualified to be directors. The Chairman replied that as the society had not paid them oft; they were still shareholders and therefore qualified. Mr Bower—Then they are shareholders in every sense of the word. The Chairman referred to the dillieultios that the society );ad to meet in consequence of the depi'essjoi) some months ago, and (ho sudden ami unexpected demands for withdrawal. With reference to rule 10 lie could say for himself that the creditors were quite mistaken, and that in the capacity of of receiving director he had regularly attended the Bank with the Secretary and witnessed the amounts reviewed on tlie previous evening paid in, The only way iu which ho could account for the Auditors - ’ statement was,that bn aacopnt of fhe Secretary’s name onjy appearing op tin} payment slip at the Bank they inferred that the Directors did pot attend.

(Several other directors gave this statement of the auditors an unqualified denial.

With regard to the complaint re directors fees and lines, the Chairman pointed out that the directors were exceedingly regular in their attendance, and the ppj.Ucf of lining- absentees being left to their discretion,' they diu not consider any laches had arisen to call for the imposition of a penalty. As to the T 8 8s A’oted as an honorarium for the time devoted in overhauling the hooks, he explained thf-t gt hj’s suggestion it was resolved’that two directors’' should take their turn by rotation every quarter, and perform this work of supervision, and ting they shoijdd receive .til Is each for their trouble. This si,pe;'V|'sjnn had been eminently ifsefijl’ Ip }he society ; and having spent three days and nights over ids own share pi; the work he considered fhe amount )></id was but a very trilling >jf.J}noH:i<;4g«ftcij.i; })p}ced, so trilling that be would readily return jt jf the slightest dissatisfaction was expressed.

Other directors remarked that the honorarium was a veritable trifle, alongside of the extra labour imposed on the dji;eelo;-s and the value of the services rendered*. ‘ ' The auditors rejoined that what they complained of was that the money had been voted illegally. Tim Chairman said it was competent for the ipceting cp gop/jraf eg reject the appropriation,'

On the motion of Mr Woollcombo, it was resolved that the amount be sanctioned.

T!ic Chairman then proceeded to deal with the complaint re directors in withdrawing their money taking an unfair advantage of prior applicants. He mentioned that in one instance the directors were justified in the course they adopted, and in the other case he believed a wrong had been done, but it was due to an oversight. Mr J. Hill, the shareholder referred to, said he had been put to considerable inconvenience through the way in which his money had been retained.

The Chairman replied that he regretted this, but the amount due to Mr Hill would be at his disposal to-morrow. Mr Healey made a similar complaint about the non-payment of money. The Chairman challenged Mr Healey’s right to be present or to speak, as he was not a shareholder. The money belonged to Mrs Healey and was vested in trustees, and the directors had good reasons for not complying with Mr Healev’s wishes.

Mr Hall contended that Mr Healey had not been fairly treated. The Chairman said it was not for him to interfere between husband and wife. (Laughter.) There were reasons, however, of which Mr Hall was well aware, hut which ho did not desire to enter into, which induced the directors to act as they had done. After some further dsenssion the following resolutions were carried ; Proposed by Mr Woollconihe and seconded by Mr Hart —“ That Pule 22, with reference to insurances, be strictly enforced.”

Proposed by Mr Woollcombc and seconded by Mr C. T. Fraser—“ That the Directors be requested to cause all deeds of mortgage, Ac., to be prepared by a solicitor.”

Proposed by Mr J. 11. Fusscll and sccomiod by Mr Ceorgo Pearson —“That the report and balance sheet be adopted, and that the shareholders of the Society tender their best thanks to the Auditors for their able and full report on the business of the Society, and they request that the Directors of the Society will carry out their suggestions as far as practicable.”

Proposed by Mr J. B. Fns,sell and seconded by Mr B. Woollcombe —“That Mr Fraser be re-appointed shareholder’s Auditor.” Proposed by Mr James and seconded by Mr W. Rutherford—“ That the Directors be recommended to increase the amount of bond to be given by the Secretary from £3OO to £IOOO. The meeting then closed.

KKCEll’TS. £ s. d. fjj vesting fttiyM.-.-j ... , ;t Kualiac<l "Hi>tires '... I!c<lemj)tit>u payments, ... 2212 m 14 <; I 1 8 10 Ejxed deposits ... Debentures issued GnO.> 100U o 0 0 0 Interest and iepji ri . •h) <i 0 Total ... WW’ 12 i KXI’EXIUTUKK. £ s. d. Advanced on Beali/.ed “ bh.n,e* ,-Jg/i Insurances 0 9 paid ... ... rr: us? InvcstiiiLC Shares with788b !) i! drawn ... .Debentures Paid ... 2000 0 0 pixel! l)el) (, si(s paid interest |-a)d 14,bin 4 u 2 4 4 Expenses .o|0 44 Total ... £*28,413 9 10 The balance due to the Bank ui Xew Zealand had been reduced durin I the