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The shareholding then, and at 30th June, 1934, was— Shares. Paid , to Paid up. s. d. £ s. d. J. W. S. McArthur .. .. .. 9,090 20 0 9,090 0 0 J. W. S. McArthur.. .. .. 810 2 0 81 0 0 Stanley Grange .. .. .. 12 20 0 12 0 0 Stanley Grange .. .. .. 88 2 0 8 16 0 £9,191 16 0 6. DIRECTORS. The first directors were the three original shareholders :— -K. Forrest, M. D. Grayson, and A. W. Coffey. Following the acquisition of their shares on or about 7th April, 1932, by the Sterling Investments Co. (N.Z.), Ltd., and the Investments Securities Association, Ltd., these directors ceased to act. A meeting, attended by J. W. S._ McArthur and C. G. Alcorn as representatives of the transferees, and held on 11th April, 1932 (described in the minutes as an extraordinary general meeting of shareholders), approved the transfers of shares, and appointed as directors— J. W. S. McArthur, and C. G. Alcorn. On sth October, 1933, transfers of all the shares of the company to R. Glover-Clark and S. Grange were approved, and though no change in the directorate is recorded in the minutes, the next recorded meeting of directors, held on sth December, 1933, is minuted as attended by— R. Glover-Clark, and S. Grange. An unsigned minute of a meeting of directors held on 10th March, 1934, which does not state who was present, records a resolution for appointment as directors of— J. W. S. McArthur, and S. Grange. From the above it is apparent that changes in the directorate followed changes in the shareholding, but that there was some irregularity in the actual appointments. 7. SOLICITORS. As is pointed out in section 2 of this report, Messrs. Hampson and Wiseman acted in connection with the incorporation of the company, and have since acted as its solicitors. 8. EARLY OPERATIONS OF THE COMPANY. The minute-book records that a meeting of shareholders was held on Bth September, 1930, when the three signatories to the memorandum of association —K. Forrest, M. D. Grayson, and A. W. Coffey —were present. The following resolutions are recorded as having been passed :— (a) That the above-named shareholders be directors of the company for the ensuing year. (b) That Miss J. Compton be appointed secretary of the company at a salary to be agreed upon. (c) That the common seal as tabled be adopted. (d) That the articles of association as filed with the Registrar of Companies be adopted. (e) That in consideration of the payment by the subscribers to the memorandum of association of all preliminary expenses, the undermentioned shares be allotted as fully paid up. K. Forrest .. .. .. Ito 34 inclusive. M. D. Grayson .. 35 to 67 inclusive. A. W. Coffey .. .. .. 68 to 100 inclusive. (/) That the Commercial Bank of Australia, Ltd., Queen Street, be appointed the bankers of the company. (g) That the agreement for purchase of 19,425 shares in N.Z. Redwood Forests, Ltd., from Modern Homes, Ltd., as tabled, be executed by the company. These minutes are signed " K. Forrest, Chairman." On sth April, 1932, a further meeting is recorded as having been held, K. Forrest, M. D. Grayson, and A. W. Coffey being again recorded as being present.

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