AUCKLAND PEMANENT CO-OPERATIVE BUILDING AND INVESTMENT SOCIETY.

Auckland Star, Volume XXIV, Issue 92, 20 April 1893, Page 8

AUCKLAND PEMANENT CO-OPERA-TIVE BUILDING AND INVESTMENT SOCIETY.

The investing shareholders of tho above

were somewhat suddenly called together by the Managing Committeo on April 6th, to conßider the advisability of going into liquidation. For many years the Society has been regarded as one of the soundesb of local financial institutions, but it appears thab bhe annual capibal derived from investing shareholders had been gradually decreasing for the past six years, and this, coupled with the fact of some £26,000 worth of property having been thrown upon the hands of the Society, accounted for the proceeding—large numbers of investing shareholders having made applications for withdrawal within the last twelve months precipitating matters. At the first meeting a Committee of Investigation was appointed to inquire into the affairs of the Society. At the second meeting this Committee recommended liquidation which was resolved upon.

The report of the investigation Com niittee was as follows :—

Your Committee have to report thab thoy havo carefully considered the financial position of the Society, and have inspected various properties in the city and suburbs, and find the same fairly satisfactory. The difficulty has been caused by a severe shrinkage in the investing shareholders' accounts, coupled with the large amount of property, valued at £21,957, which had to be taken over by tho So6iety, and which they had not been able to realise upon. (1) Your Committeo beg to recommend thai the Society go into voluntary liquidation, to extend ovor a period not exceeding four years, and think that if the properties are gradually and advantageously sold, the loss might not be heavy. (2) Thab a commission be paid to the liquidator on the net proceeds of the realisation of the properties, and that he be empowered to give such terms as not to excoed 3 years from the Ist July, 1893. (3) Thab the liquidator, if so advised, may spend money on properties for repairs and painting, which wonld enhance the value and render them more saleable. Herewith we append a statement, showing the amount due to depositors, the Bank of New Zealand, and investing shareholders, #nd how tbo latter has been operated upon ; also, a statement of the amounb of properties in liquidation, and tha charges for the past year.—R. Cameeon, ROBERT C. Carr, Thomas Seaman. Due to depositors on 31st March, 1593, including interest, £18.301 8s; due to Bank of New Zealand, £9,563 ISs 9d ; due to investing shareholders, approximate, £16,014 17s 6d. Investing shareholders: Under notice, £7,205 7s 5d ; maturing, £3,000 ; balance subject to withdrawal, £5,80910s Id : total, £16,014 17s 6d. Seventy - six shareholders have given notice of withdrawal since 6th May, 1892, amounting to £8,029 19s 4d, of which only seven wore paid in rotation, amounting to £842 2s 6d (including interest), and who gavo notice prior to oth July, 1892. Amounts receiving from investing shareholders during twelve months ending : March, 1889, £14,253 15s 2d ; March, IS9O, £10,823 4s 4d ; March. IS9I, £8,52*1 0s 8d ; March, 1892, £5,762 0s Id; March, 1893, £2,397 9s. , The largest amount received in any year was £18,000. Properties in liquidation, £10,424, 10s lid, yielding £740 per annum ; mortgages fallen in prior to 1892, but not taken over, £8.484 ls 7d, yielding £516 per annum ; mortgagos fallen in since March, 1592, £3,058 7s Sd, yielding £240 per annum ; total, £21,967 0s 2d. Interim accounts, £4,074 Is 9d, yielding £267 per annum ; total, £26,041 ls lid, yielding £1,763 per annum. Amount due by borrowing shareholders, about £17,000.

Charges : Salaries, £575 ; fees, £121; rent, £262 16s 6d; land tax, £81 6s 3d ; advertising, postage expenses, and stationery, about £40 ; total, £1,080 2s 9d. Mr Geo. Harper took ib that bhe report of the Investigation Committee merely corroborated the statemenb presented by the Society committee ab the previous meeting. It was clearly proved that there was nothing wrong in the books or accounts, and that the valuation previously set upon the.properties was a fair one.

Mr Seaman : Exactly. The Chairman then moved "Thab the Auckland Permanent Co-operative Building and Investment Society be wound up voluntarily, under the supervision of the Supreme Court, and that this meeting authorise the Hon. T. M. Haultain, a member of the Society, to petition the Court in that behalf, and to present such petition on behalf of the Society," Air George Harper seconded the motion, which was carried unanimously. The Chairman proposed, " That in such petition, application be made to the Court to appoint John Batger, the present secretary of the Society (upon his entering into a bond to Her Majesty the Queen, with two or more sufficient sureties in such sum as the Court may approve), to the office of official liquidator, without any previous advertisement or notice to any party." Mr C. B. Buddie seconded tho motion. Mr Berry declined nomination,, and moved as an amendmenb, "That the names of Messrs Devore and Skinner be added as liquidator--." This was seconded, by Mr Thomas Seaman aad carried. Colonel Haultain moved, •• Thab in such

petition application be made to the Court to fix the amount to be paid to Mr Batger, one of the official liquidators, as his renumeration, including the necessary emDloyment by him of assistants or clerks, to be a commission at the rate of £2 10s for every £100 value of the estate realised, including debts and rents collected; the other liquidators having offered to render their services gratuitously." Replying to a shareholder Mr Batger said that the remuneration would depend upon the realisation of the assets, including clerical assistance. The gross amount would probably be about £250 per annum. Mr Cochrane asked if the depositors would get interest on their money. The Chairman thought they would, as they were in the same position as the bank, which would get its interest. Investing shareholders would get all the depositors left.

A voto of thanks to the Investigation Committee terminated the meeting.