THE TARANAKI OIL WELLS.

Taranaki Daily News, 25 September 1919, Page 6

THE TARANAKI OIL WELLS.

WINDING-UP PROPOSED. By yesterday's English mail, tlie fol« low inj; circular was received by ,nhare« holders of the Taranaki (N.Z.) Oil Ltd:The history of the company 1 ! opera' tions, is 110 doubt, familiar to many:of the,shareholders who are resident in New Zealand. The Board have been met with every encouragement and with material financial assistance from the New Zealand Government (in the shape of loans . at interest) in their persistent endeavour to tost the oil field; tfcey also gratefully acknowledge the loyal cooperation of the shareholders by way of debenture loan. The Board, however,, have come to the conclusion that without much larger capital at their disposal, it would be detrimental to the interests of the shareholders to continue further expenditure, as so far oil in commercial quantities has not been obtained, certainly not at a cost that would show 4 profit. It was under these circumstances that early in the present year the Board felt that constituted as the company was, as an English company, with its registered office in London and a London Board, it was desirable it should cease incurring further liabilities of any kind and after discharging its debts, should, within as reasonable a time as practicable, liquidate its affairs, conserving its remaining assets with a view to making some smalt return to its shareholders. The Board were fortunate enough to Und a purchaser for the refiniery (other than the tinning plant), at a fair price, and out of the amount realised were enabled to repay the debenture loan, and the monies advanced for sinking operations by the New Zealand Government, together with all trade and other liabilities then owing by the company. If it is the desire of the resident in New Zealand to continue the exploration of the oil field by further and deeper sinking the Board feel this should be done by a company ; formed, registered, and controlled in New Zealand itself. The only mer)iivt by which anything in the way of a transfer to such a company can be legally effected is by winding up the pxisting company and by the liquidate* selling the undertaking to the suggested new company. In the event of any such arrangement as above contemplated being desired, the directors will use their best endeavours to facilitate it and will recommend the English shareholders to accept their proportion of the purchase money, or the greater part of it, in the shape of shares ill the New Zealand undertaking. The provision of the company's articles of association, which are in the ordinary form, would not enable effective notice of the proposed winding up meeting being given to shareholders residing outside the United Kingdom, but it would lie highly distasteful to the Board to proceed on these orthodox lines, and the distant date fixed for meeting by the enclosed notice (.Innuary 22nd. nevt) is for the purposo of ene.Ming New Zealand shareholders to jointly send over a duly accredited representaive or to appoint proxies to represent them at such meeting nnd vote thereat. The Board Ts- ready to accept proxies either for or against the liquidation hut in the latter event it must lie plainly stated on the !proxy form itself that it is desired to use it against the resolution for liquidation. LOCAL ADVISORY BOARD. THE POSITION 1 EXPLAINED. We have referred the subject matter of the above circular to Mr. 0. Carter who, with Messrs. J. Little and J. B. Roy, constitute the Advisory Board as attorneys of the London Board. Mr. Carter says that ever since the erection of the refinery at Moturoa five years ago the London Board has left to tha Advisory Board and to Sir George Clifford, of Christrhurch, who is a member of the London Board, the responsibility of carrying on, nnd the undertaking and making of all necessary financial arrangements, and has in the meantime rendered but little assistance to the Advisory Board. Upon the sale in November last of thi! refinery to the Anglo-Per-sian Company; which sale was effected by the London Board after reference to the Advisory Board, the London Board asserted and maintained its right to dis. pose of the purchase money, and refused to allocate to the Advisory Board any amount tVr cc .Tying on the undertaking. Requests for" informal ion by the Advisory Board were disregarded by the London Board, which cabled that, it would shortly circularise Dominion shareholders with regard to the proposal that tfy* company should go into voluntary liquidation, but giving no reasons for so doing or further proposals. The Advisory Board has nlways Oeen opposed lo the cost of maintaining a Hoard in Loi:don, while it itself has had to bear the burden of carrying on the undertaking, but ha., had no power to call a meeting of »the Dominion shareholders on liny question affecting the company. It, however, proposes to circularise the shareholders as to the present -position, and ask them to send, ihrouyh (lie Advisory Board, their t proxies to Mr. J. H. yuilliam. the local I solicitor, who has left, on a private visit to London and wiio will probably arrange to b« present at the .lanuary meeting. The Advisory Board,, in anticipation of the receipt of the above 'circular, has already communicated with the Prime Minister, and Minister of Mines, and the member for the district,