£35,680 May Go to Tobacco Manager

Sun (Auckland), Volume II, Issue 336, 23 April 1928, Page 11

£35,680 May Go to Tobacco Manager

SHAREHOLDERS ROUSED BONUS FROM N.Z. COY. By a late mail shareholders in the National Tobacco, Ltd., were notified of an intention of the directors, at an extraordinary general meeting scheduled for Thursday next, to / ask shareholders’ sanction of a proposal to allot the present managingdirector, Mr. G. Husheer, 35,000 fully paid shares for certain considerations. No detail of the considerations were contained in the circular to shareholders. They were xnerely informed that they could inspect a copy of an agreement with Mr. Husheer at the Napie.r office of the company. Attempts to take copies of the agreement for the benefit of distant shareholders were stopped. The general manager in a circular invites distant shareholders to sign an enclosed proxy form and return the same in time for thfc meeting so that their interests as a shareholder might be protected. In addition to the proposal to transfer to the managing-director 35,000 shares, shareholders on Thursday will be asked to consider proposals further to increase the capital of the company by the distribution to shareholders of £35,793, part of undivided profits in the company on the basis of one fully paid share for every share held. The company, which has its head office in Napier, has a paid-up capital at the present moment of £35,793, and has registered a steady increase in turnover since 1924 when net profits were recorded at £2,081. The balance sheet published in 1927 showed a net profit of £19,160, equivalent to 53.53 on the paid-up capital. Mr. G. Husheer has occupied the position of managing-director of the company since its inception.

Auckland shareholders asked at such short notice to sanction a proposal to transfer such a substantial holding to the manager, without receiving any information as to the company’s share of the deals, were naturally incensed. Investigations made by a Sun representative revealed the fact that the agreement provides: Gei'ard Husher is to act as managing- directoi' and general adviser* to the company for a period of ten years from November 192 S at a salary of £960 and a commission of 1J per* cent, of the gross turnover. He is also to be allowed to retain all blending secrets. This, of course, is in addition to the gift of shares. The sole reason for this handsome gift is given as compensation for past and future services. Several Auckland shareholders when acquainted with the terms of the agreement this morning by a Sun man were indignant that such a proposal had been sprung upon them at such short notice, and that the directors had not seen fit to take them into their confidence. The contention was raised that even if the managing-director had been largely responsible for flic growth of the company, he had received a substantial salary all the time, and, that, while he might be entitled to a bonus, the gift proposed was practically unprecedented. A leading sharebroker commenting on the proposal stated that in considering the value of the shares present holders should consider more than the gift of £35,000 —the attitude of the Tobacco Trust and how the affairs of the company would progress in the event of Mr. Husheer’s death. “Its pretty, hot,’ said Mr. o. C. CTeagh, chairman of the Auckland Stock Exchange, when shown a circular this morning. "Before being asked to vote,” he continued, "shareholders should have been advised of the terms of the proposed agreement with Mr. Husheer. The circular was quite unsatisfactory to shareholders who lived at a distance." "The principle of the thing is wrong. No shareholder should have an advantage over another.” said Mr. J. "W. Frater. vice-chairman of the Auckland Stock Exchange, when referring to the fact that distant shareholdes had been barred from obtaining information.