BANK OF NEW ZEALAND.

Temuka Leader, Issue 1802, 13 October 1888, Page 1

BANK OF NEW ZEALAND.

Auckland, Oct. 11,

A special general meeting of the shareholders of the Bank of New Zealand was held this afternoon. There was a larg« attendance of shareholders, and Mr Geo. Buckley presided. The chairman moved the following resolution : " f hat £3 per share of the present paid-up capital of the bank be, and is hereby, cancelled, such capital being lost, or being unrepresented by available assets, and that thenceforth dividends shall h« paid on such shares as representing £7 each instead of £lO each, the original amount thereof, but such reduction shall not interfere with or in any way alter the liability of shareholders to contribute 3 further sum of £lO, as provided by the Bank* Act and the Deed of Settlement, in the event of the assets of the corporation bting insufficient to meet ita engagement?.—Mr O. E. Button seconded the resolution.

Mr- Cherryc thought that the shareholders should know more about the losses suffered, including those amongst certain directors. He would propose as an amendmaat —"That baforo agreeing to the proposal to write off £3 per share, equal to 46 1 per cent, of the actual cash ,paid into tht bank by the shareholders, it 'is desirab'e that further and more full information should be supplied." Mr J. McOoah Clark urged that the (Charges in the report should have been specified. Mr Reader Wood criticised the report unfavorably, and »iid that if the committee's report did not give sufficidnt information it was only due to tht committee to confess that something more specific should be done in the matter than the passing of two formal resolutions. The chairman replied to a letter written to the New Zealand Herald by Dr Campbell, a former president of the bank. He considered that DrCimpbell had been too easy, and let things be done which he perhaps disapproved of. He read a minute from the bank directors' proceedingsdated Nov. 14th, 1882, as follow* : —"lt was reported to the board that after consultation with the majority of the board the following reply bad been sent; ' The Pafcetere company must not be a failure at the last moment. . Let Rich make the necessary subscription, taking his guarantee irrespective of any guarantee here, which I urn endeavoring to arrange." This was a cible£r>>m which had he' n sent to L'tnfion. The chairman spoke very strongly as to the inanner in w< ich the b\nk'o money hid been ppent in this instance. At the very laat botrd meeting i money had to be advanced to pay a ca'l of ; some thousands of pounds, or else lose

everything. The chairman staled th>i legal procjeditgs would probably have to be inutituted with r. foreoce to the transfor of certain shares to the London register. Mr Chcrry'd amendment was lost by » l.rge majority, and the resolution was carried. Tim chairrn m moved the following resolutions, which were carried urv.ni mously : " That the directors be empowered to receive from the shareholders wil'ing to pay the snrne £3 per share to reinstate their shares to the original araouut of £lO per share, and on all shares so leinaUted to pay dividends on the original amount of s-ich shrefl ; provided that. Rich p-.y----merit to reinstate shares shall not rend r the "shareholder liable to pay anyfiirthr or larger amount than ho would have been liable for if the shares hid remained at £lO each, »s originally created." " That the several assets and accounts held for realisation, and outside Ihe category of what may be regurded r.» current birine-s, bo liquidated by thdirectors as speedily as may be, having regard to the advantageous realisation thereof, and that in the meantime such assets be transferred to and held and traated in globo in a separate liquidation I account, and so as that tliu surplus in realising any one asset may be set against the deficiency in rea'ising any ot'i'-r without passing such surplus or deficiencies respective'}' through the ordinary piofit] and loss account.'

"That in disposioa of new shares created and authorised to be i*-su n d by resolu'ion of the ppee'al Kt>n»ral meeti.,'/ of proprietors, hold on the 3rd October Nst, the board of directors m>y make it ooe of the conditions that payment for siK-li new sh 'res may lie by such instalment as the board of directors may think fit." "That th» directors are hereby requested and empowered to apply to Parliament for statutory confirmation of the resolutions passed at this meeting.''