CONCERN EXPRESSED

Waikato Times, Volume 127, Issue 29241, 11 October 1940, Page 6

CONCERN EXPRESSED

SHAREHOLDERS’ LIABILITY CONVERSION DESIRED Concern about the contingent liability faced by many shareholders who had taken out £5 ordinary shares and had had only £l, £2 or £3 called up, was expressed by Mr P. H. Saxton at the annual meeting of the Farmers’ Co-operative Auctioneering Company, Limited, today. Mr E. M. Edkins, the chairman of directors, presided over a good attendance. Mr Saxton said the liability was there and if there were any likelihood of the remainder of the money being called up it would be during a depression. Shareholders would then be embarrassed. He moved that the directors be asked to allow tiie holders of ordinary shares to liquidate their liability by the payment of the balance owing on such shares; or, as an alternative, allow the holders of ordinary shares to convert them into fully paid shares corresponding with the amount of money paid up on the same, and on the basis on which they were allotted. Directors Entrusted In seconding the motion Mr A. R. Rutherfurd said that in these uncertain times no one wished to have liabilities hanging over his head. He agreed with Mr Saxton that as the snares stood at present the contingent liability was there and would be there for a long time. An amendment was moved by Mr W. J. Lusty that the matter be referred to the directors who, if necessaiy, could call a special meeting of suen shareholders. Mr D. Hay seconded the amendment. “If shareholders do not like to hold their shares they can always sell them on the market,” commented 'Mr Edkins. The amendment was carried by a wide margin. Messrs C. W. Armstrong and R. P. Hazard were re-appointed auditors, and Mr D. Hay shareholders’ scrutineer.