NEW ZEALAND FROZEN MEAT COMPANY. TO BE WOUND UP VOLUNTARILY.

Te Aroha News, Volume VII, Issue 403, 18 September 1889, Page 6

NEW ZEALAND FROZEN MEAT COMPANY. TO BE WOUND UP VOLUNTARILY.

LIQUIDATORS APPOINTED. Auckland, September 11.

An extraordinary meeting of shareholders of the New Zealand Frozen Meat and Storage Company was held at the Company's premises near the Railway Wharf .this morning, for the purpose of receiving the report of a committee appointed at a previous meeting, as to the possibility and advisability of reconstruction. There were twenty-three shareholders present, and Mr A. Bull, Chairman of Directors, presided. Committee's Report.— The report furnished by the Committee was read as follows :— To the shareholders of the New Zealand Frozen Meat and Storage Company. Gentlemen, — We have examined the financial position of this Company, and have come to the conclusion that we do not see any probability ot anything coming to the shareholders after paying the liabilities owing by the Company. We cannot suggest any scheme to put before the directors that is likely to benefit the present shareholders, and the only alternative we see is liquidation. — Yours faithfully (signed) Thomas Ching, John B. West, Henry Green." Mr H. Green, one of the members oL Committee, supplemented the information given in the report. He said : "We were supplied with all the particulars of property we asked for, buo the margin of assets over the encumbrances appeared to be too small to make it worth while to tackle reconstruction. The new undertaking would consist of two parts — a company to acquire the leasehold and a company to continue the meat business and cold storage, with a fish export business. We have been supplied with details showing 7 per cent, could be earned on a sum of £48,000, but in the first place, that amount would be required to buy back the works, and those who might be prepared to consider that question might come to a conclusion less pretentious works would answer the purpose, and the Otahuhu property be utilised for the purpose. Everyone must regret thac the liberty to deal with the Company's reclamation was withheld at a crucial time, and only granted when it would benefit the mortgagees instead of those unfortunate shareholders who meant doing well for themselves and Auckland. Our public bodies have yet to prove the wisdom of slapping in the face enterprise of this kind." Mr Jones moved "That this meeting be adjourned." He said his reason for doing so was in order that he might transfer five shares to Mr Thos. Cotter, solicitor, to enable the latter to be present at a future meeting and have some locus standi. The Loan Company, the Bank of New Zealand, and the Freezing Company apparently were represented by solicitors, and he thought the shareholders should be similiarly protected. The Chairman : There is no objection whatever. Mr Jones : Then why did you not transfer the shares to Mr Cotter ? The Chairman explained that Mr Jones only applied for a transfer yesterday, and that the law required that all transfers should be made at a meeting of directors. There had been no meeting of directors since, and therefore Mr Jones had no grievance. Mr Jones said that he would ask that the meeting be adjourned until such time as a transfer of his shares could be made. If the adjournment were not granted he would take it that the directors were afraid to be called upon to account for mismanagement that had resulted in the loss of the money contributed by the shareholders. The Chairman said it would be for the meeting to say whether the proposal made by Mr Jone3 should be carried out. The directors had no objection. One result that might happen, however, was that the liquidation might be carried out through the Court instead of voluntarily by the shareholders. Mr James Russell said he was present as a shareholder, and not in his capacity as a solicitor, but he might give Mr Jones some advice notwithstanding. Mr Cotter would, he said, have as much power to investigate the affairs of the Company after the concern went into liquidation as before. If he came to the meeting he would be able to record his vote just the same as any other shareholder. The matter was not closed after liquidation was decided upon, and Mr Cotter could investigate matters and bring anything that he chose before the Supreme Court in the ordinary course. Mr Stringer seconded Mr Jones's motion. He saw so many lawyers present that he thought the shareholders should have one for themselves. Mr J. P. Campbell concurred in the view taken by Mr Jas Russell as to the value of Mr Jones's proposal. The resolution was put and lost, only five voting in its favour.

LIQUIDATION. The Chairman then moved : " That it has been proved to the satisfaction of this meeting that the Company cannot, by reason of its liabilities, continue its business, and that it is advisable to wind up the same, and accordingly that the Company be wound up voluntarily." Mr D. Caley seconded the motion. Mr Jones urged that the report presented by the Committee was by no means exhaustive, and that the Committee should have given shareholders a thorough report showing the result of their investigations. Mr Brown said he did not find fault with the directors, but thought, where business had been conducted with such disastrous results, the shareholders should be provided with further details than were afforded in the report presented by the Committee. He suggested the possibility of ss, 10s, or eomething less in the £1 being got from the creditors of the Company in consideration of the whole concern being handed over. Mr Ching replied that the Committee tried both the Bank and the Loan Company with this object in view, unsuccessfully. The Chairman pointed out that the actual state of aflairs had been disclosed in the balance-sheet. Unfortunately the losses from shrinkage, and on the valuation of the Company's properties, were such that the value of the securities very closely approached the amount of the Company's indebtedness. When the expense of realisation on the balance of assets was taken into account he feared there would be no margin whatever over the debt of the Company. Consequently he considered it unreasonable to ask the institutions mentioned to give any more money. At the same time he assured shareholders that the assets of the Company would be made the most of. Mr Green said he thought there was good ground for asking the Bank and Loan Company to give a small sum to the shareholders for abandonment of all rights. There were precedents for the adoption of this course in previous cases of a similar kind. The resolution was then put to the meeting and carried by eighteen against two.

LIQUIDATORS APPOINTED. Mr James Russell moved, " That Mr G. Schwartz Kissling be appointed a liquidator for the purpose of winding up the Company." Mr G. P. Pierce seconded. Mr J. Dilworch was also proposed, but declined to act on account of ill health. Mr Fisher proposed Mr Alfred Buckland to act conjointly with Mr Kissling. Mr Ban bridge seconded the nomination. The Chairman remarked that there was no objection to two liquidators being appointed, but the question of their payment would have to be taken into consideration. Mr Jas. Russell observed that this could be of little concern to the shareholders if, as had been stated, they were to get nothing out of it. The motion was put and carried unanimously, and the remuneration of the liquidators was fixed at one hundred guineas, to be divided as they might decide between themselves. The rough minutes were then read, and the meeting terminated.