HOME BUILDERS, LTD.

Taranaki Daily News, 22 July 1916, Page 2

HOME BUILDERS, LTD.

LIQUIDATION DISAPPROVED. NEW DIRECTORS ELECTED. LOSSES OF THE COMPANY. I PROSECUTIONS MAY FOLLOW. I At an extraordinary meeting of the J shareholders of the New Zealand Home Builders. Limited, licld at Auckland on Wednesday, it was decided not to go into liquidation, but that the directors be asked to resign; also that legal proceedings be taken against such "persons as may he advised upon in connection with the company's losses. Only ten shareholders voted for liquidation. Mr. M. V. Wheeler, secretary, presided over an attendance of 75 shareholders. Mr. B. Dive said the Investigation Committee had engaged counsel, and also an accountant to investigate the books. Shortly after the starting of the inquiry it was found that 'the company had undertaken largo liabilities and obligations. The securities, although they might, be gilt-edged, were difficult to finance, and it was hard to get people to take them for anything like a fair advance. That difficulty had now been surmounted, and he was pleased to say that provision had been made to meet all liabilities and the institution from which the money had been borrowed was Mich that during the next 15 months tbe company would bo able to wipe off til liabilities and have all securities intact. The question of dealing with the finances was not really part of the duty of the committee, the latter having to go to the directors and' ask permission to do the financing. It was a fortunate thing the directors allowed it. The company were threatened on all sides, and there were over 100 summonses likely to be issued. Mr. Wheeler: Many more than that number. CLAIMS WERE NOT iPRESSED. Mr. Dive said ttbey sent out over 100 urculars asking for claims not to be presented at that time, and that was, fortunately, agreed to in the majority of cases. It was also found- on investigation that the company bad beer, sued, that no attempt had been made to answer, and that the cases were allowed co go by default in Court. That attitude was unfortunate. They sthould have confessed judgment in or<Jer to uvoid_ publicity. The balance-sheet, 'Mr. Dive continued, showed that there was a 'loss ©f approximately £22,000. In justice fco the old directors, it should be said that nothing had, been allowed for depreciation. As regards the stocks, the valuation of the committee win soaiething like 0000, showing a loss of about £II,OOO. The directors' valuation was £ISOO in excess of that, hut—in any case—£9soo had gone. Regarding the securities on buildings, they bad to be taken on the face value, which was accepted as correct. The total profit made on buildings was something nk« CI-ll:), which was very small, considering the amount of business done by tlie company. TRUE POSITION OF THE COMPANY. Mr. Dive said a balance-sheet showing a loss of £23,000 would be somewhat near the mark, and a true position of the company to-day. The committee recommended that the directors be asked to resign, and that certain legal proceedings be taken. H,, did not think it necessary to give the why and the wherefor in those respects, but thought the shareholders could rest assured that the, conclusions were arrived at only after very careful deliberations. The meeting would have an opportunity for deciding the question of liquidation. He did not think it would be found that the deficiency now existing had occurred during the last seven months, but throughout the whole existence of the Association. They were £23,000 to the bad, and he did not see how it was possible to continue. If in say 12 months from now they desired to put up buildings cchero was the capital to come from? They had no capital, and that was the essence of the-31111111101). MORE CAPITAL ESSENTIAL. The only logical thing, Mr. Dive continued, was to get more capital into the concern. Were tbe shareholders prepared to put their money in to give the required success? If he'went round the mec-ting he feared he would not meet with much response. lie failed to see how they could alter the opinion arrived at by tbe committee. He thought liquidation was the best solution of the difficulty, lie then moved: "That the present directors be asked to resign, and that a new board be elected; and that legal proceedings be taken against such persons a-; counsel may advise in connection with flic company's losses.'' Mr. Ilampsnn, who seconded the motion, -aid the directors certainly did not possess the confidence of the shareholders. He was not in a position to divulge exactly what advice compel had given. II- would like to express sympathy with two of the directors, .Mr. llossitci and Professor Segar, who had done their best to assist the sharebrokers. Mi. Wake opposed the first part of the resolution as be regarded it as grossly unfair to some of the directors present. Professor Segar ami Mr. Russiler certainly came to their rescue. The resolution we... put and carried. LIQUIDATION MOTION' LOST. Mr. llampson moved: "That the company he voluntarily wound-up." lie *:iid the loss bad been made, and the question now was a-, to whetliei they were going lo realise it. Liquidation did nut nece-sarilv mean sacrifice. Mr. Dive seconded the motion, remarking that he heliewd it would be as difficult to earn, liquidation as it would be to carry prohibition. After a few questions of detail bad been asked and replied to the motion was lost, there being 10 in favor of liquidation and 05 against. THE NEW I)II!KCT(IRATE. The I'ollowiim new diiectoratc was elected:-Messrs S. T. Kos-iter, W. Andrew F. T. Mann-ell. M. .1. Bennett. G. L Winger. I!. Hive. L. T. W,^„v