Untitled

South Canterbury Times, Issue 2486, 9 March 1881, Page 2

The experiences of the shareholders in the Standard Fire and Marine Insurance Company, which has its headquarters in Dunedin, appear to be far from pleasant. According to the statement made at the half-yearly meeting on Monday the concern has for a long period been worked at a dead loss. The directors and shareholders seem to have fallen into bad hands, particularly the shareholders,. Instead of enjoying a dividend they have been living on their reserve fund, £15,000 of which has been swallowed up during the past year. Of this upwards of £6OOO went for salaries, office expenses and commissions. Not bad for a rather small insurance concern ! At the last meeting of the shareholders it was decided to try a change of managers, and a new manager was agreed upon. But the directors and shareholders appear to be constantly pulling in different directions for instead of carrying out the resolution arrived at, the directors decided to retain the two managers, giving the new man a roving commission and retaining the old manager in a lucrative billet at home. To add to the misfortunes of the shareholders, serious defalcations in the shape of cooked books, accounts and balance sheets have been discovered, and one of their former servants is awaiting the next criminal sessions. In the meantime the hooks of the company, although impounded by the Bench, are leaf by leaf disappearing. On the whole, the prospects of this Company are overshadowed by clouds of mystery and rascality, and the transactions of certain officers reveals a dearth of good management and common honesty which to those who have to pay the piper must ‘bo alarming. The fate of the Standard Company conveys a moral that joint stock companies may judiciously apply. It shews the responsibility that rests with shareholders in keeping a strict control over the action of their directors. With a good directorate,we have no doubt theStundard Insurance Company would be in a very different position from what it enjoys. Unfortunately too little importance is frequently attached to the appointment of directors, and shareholders only become aware of the mischievious results of their apathy and carelessness when they lind the balance on the wrong side of the ledger. An easy going directory, ill-paid and imperfect audits, and unscruplous officers will ruin the most prosperous concern that has ever been launched.