NOVEL SYNDICATE

Te Aroha News, Volume VII, Issue 460, 5 April 1890, Page 4

NOVEL SYNDICATE

AN IMMENSE ENGLISH COMPANY. UNIQUE FEATURES IN ISSUING STOCK. A New York despatch of March 7th says : —A big financial institution, which has no counterpart in this country, is soon to be organised in New York. It will have for its principal object the capitalisation of industrial enterprises. In fact, it is the intention to reproduce industrial corporations which have within ten or fifteen years opened an enormous field for investment in England. The new institution will have a capital of $5,000,000, and it will be a joint English and American Company, with headquarters in New York and London.

The plan of organisation, entirely unlike that of any American corporation, is well worth studying. The capital of the company will be made up of 99,825 ordinary shares, of SSO each, and 175 so-called founders’ shares, each of SSO. The founders’ shares are to be divided among twenty-five subscribers, each of whom must pay, in addition to the SSO per share, SSOO cash per share, to be vised in meeting the expense of organisation. Five founders’ shares are to be retained in the treasury of the company, and the earnings on those five shares are to constitute the entire compensation of the direc-

tors.of the corporation. Each of the founders will be required, in addition, to subscribe or guarantee a subscription of 250 ordinary shares, thus securing $1,250,000 of capital stock before the books are opened for public subscription. These arrangements apply to one-half the total capital stock, which will be placed in this country, and the remaining half will be disposed of in precisely the same manner in England. The relations of the founders’ shares to the ordinary shares will be that they shall be entitled to one-half the profits of the company after a dividend of 7 per cent, has been paid on ordinary shares. It will carry on all sorts of enterprises.