The Co-Operative Stores

Taranaki Daily News, Volume XLVI, Issue 169, 21 July 1904, Page 2

The Co-Operative Stores

AN AMALGAMATION SCHEME. During the past few weeks there have 'been constant rumours of a change in two leading; grocery and provision businesses in town, the generally uccepteil version being Unit (he New Plymouth Co-operative Society was to buy out Mr C. Carter's I business. Tho real proposals were, I however, as under, and were submitted by the directors to a general meeting of shareholders of the .New P'ymouth Co-operative Souiety on Wednesday afternoon That the capital of the Society 'be increased from £SOOO to £20,000 by issuo of 3000 '.'Preference Shares' l of £5 each, Suoh preference sluires to confer on the holders thereof the right to a minimum preferential dividend at Urn rate of £5 per centum per annum ; that the regulations of the Society lie uttered by excluding Hules 3, 4, 5, 28, 30, -14, 01, and 74, arid adopting regulations that the capital of the society shall be £20,000, divided into 5000 ordinary shares of £1 each, and £3OOO preference shures of £5 each ; and each of such prefere-nce shares shall confer on the holder thereof the right to a minimum preferential dividend at the rate of £5 per centum on the amount for Ihe time being paid thereon. Ordinary fully paid-up shares may at any timo bo converted into preference shares.. Tho holder of any such ordinary shares may surrender any such shares, and receive in lieu of the shures surrendered an equal number of preferentje shares, with £1 paid up on each share ; or one fully puid-up prefferenco share for every 5 of such ordinary shares surrendered provided that on surrendering such shares he shall apply for one new preference share with nothing paid thereon in respect of the first five of his ordinary shures so surrendered, and for anothes such preference share in res[>ect of every 10 of his ordinary shares, so surrendered in excess of tho first 10 so surrendered. A notice in writing signed by the shareholder of a desire to convert ordinary shares ill manner provided by Kule 4 shall when received by the directors operate as a surrender of such shares; and a notice in writing of the desire by the shareholder to receive preferences shares shall be deemed an application for such shares. Every member shall have one vote and every member, holding 10 shares and less than 20 shares, shall have two votes, and every member holding 20 shares and less than 50 shares shall have three votes, and every member holding 50 shares or upwards shall have four .votes. The numta- of directors shall be six, of whom the

manager of thb society for the time Ixnag shall ox officio be jwmu Thfi provisions of articles 99 and 100 01 the regulations in Table Aof the A'f t0 " Ths Companies Act , 190 d, are adopted herein, and tho directors shall have and may ex0£ eise all or any of the powers .therein specified. A manager shall be appointed by the diruuors on such terms and condition!) ns to special remuneration and tenure of office as he and the directors may agree upon. lliat tho name of the society be changed to "The Taranaki tive Company, Limited." 1 here was a good attendance of tho share-holders, Air J. B. Connett, chairman of directors, presiding. The chairman explained the above proposals, stating that the main object was to amalgamate the company's and Mr (I. Carter's businesses, retaining Mr Carter as general manager. Ho read the draft of an agreement between tho society and Mr Carter, and gave some fuller information.

Captain Gibson asked if All- Carter was to be precluded from entering other business. He explained that he held the opinion that a man could not be a successful manager of the company's business and' dovote his evenings to .borough council matters.

The chairman said lie could not agree with that, and the manager should not be barred from taking his place in 'municipal affairs. He instanced the case of a very successful manager of a business filling the office of mayor of a borough, and yet the business did not suffer. He moved the adoption of the proposals, announcing that he was tirod of the way things were going on now. Mr Wade, a director, seconded, considering the ((hange was necessary in tho interests of the society.

Mr Weir objected to tile new manager being a director. The chairman, in answer to questions, stilted that the idea was to use Mr Carter's premises l'or the retail business, and use the old premises for bulk goods. Mr, Brash would still have charge of the butter department. Mr Weir thought Mr Carter should have given fuller information regarding his business. It wus all very wqll to say his turnover waa £IOOO, but) they should know tho amount uf his cash takings, bad debts', and so forth. The chairman said that tho shareholders could hardly expect full details of 'Mr Carter's business^ In answer to Mr. Wattoins, the chairman said that Mr Carter had proved a successful business man. Messrs Watklns and liewloy thought the directors wore rushing the business through too guiekly, Mr Bakewell movod, and Mr Watkins seconded, that the meeting should adjourn, the mover being of opinion that if the directors could not run the concern to pay, the shareholders should have been asked to appoint others. The motion to adjourn was lost, and the adoption of the proposals carried by 35 to 15. Tills resolution will como up for confirmation at a special general meeting of shareholders on Aucust 6th next.