WINDING UP.

Taranaki Daily News, 7 February 1922, Page 8

WINDING UP.

INSURANCE CO.’S OPERATIONS. GIVING SHARES AWAY, By Telegraph.—Press Asen —Copyright. London, Feb. 4. A provisional liquidator of the City Equitable Fire Insurance Company, of which a winding up order was recently granted, was been appointed at the company’s own instigation, in order to protect its interests against creditors of the company. The company announces that efforts are being made to evolve a scheme to save the whole position.

Though no explanation is giveiN for the suspension of the company it is believed the insurance business was not responsible, but a financial policy on lines not customary among 'insurance companies. It is reported the assets are locked up in a manner rendering quick realisation impossible. Some funds ate locked up in hotel properties, including Claridge’s Hotel, in Paris, purchased when the franc was 25 to the £l, so realisation would mean 50 per cent, loss. There are many well-known shareholders, including the Earl of March, the Earl of Ilchester, Lord Ribblesdale, Viscountess Haig, and Lady Rhondda. The capital consists of £1 shares, on which four shillings is paid. They were quoted, until the middle of January, at 50s. Las year’s dividend was 250 per cent. —Aus.-N.Z. Cable Assn.

[Tn a previous cable it was stated that shareholders have been trying to give shares away with a bonus of 5s to 10s per share in order to escape the uncalled liability of 16s.]