AUCKLAND GAS COMPANY.

Auckland Star, Volume XXVIII, Issue 73, 30 March 1897, Page 5

AUCKLAND GAS COMPANY.

As extraordinary maefeing of eharaholdere of the Auckland Gas Company (Limited) was held this aftarnoon at the Company's Office, Wyndham-atreet. Mr 3. H. Upton presided. There was a very large attendance of shareholders.

The Chairman said thab the Board had received two lattera from absent shareholders and one desired that hia letter ehoul.d ba fead. Was this tho wiah ot tho meeting?

The meeting replied in the affirmative. J-he Chairman then read a fetber eigaed by Mr h. b. id or ton, in which ha enclosed his proxy, and said that he wished to vote against cha raaolutiona to bs proposed at the meoting,' and gave reasons as follows : - (1) That resolution hye adopted at the general meeling oit shareholders hold on she 6th August, ISB4, provides •' That the directors make cailß on the new shares from time to time as the affairs of the Company require additional capital, a proportionate part of the premium being pa id with each call." (2) A year ago when additional capital was requirod Che directors pursued tho course prescribed above—n courao which I boliove is almost invariably adopted by public companies under similar circumstances and raised the whole of the necessary capital by a call on tho shares already allotted of the new issue. (3) Tho circular to shareholders now issued diecloses no reasou why tho same means of raising additional capital should nob now be lollowed. (4) In reliance on the provisions contained in resolution 5, already quoted and confirmed by the action of directors a year ago. the public have freely bought shares of the now issue, and it would be fairer to provide the capital now required by calls on such shares. It might at the same time be understood that future capital would be provided for (pro rata) by calls and sales of new shares as now proposed ; if the directors were still of opinion that such a course was fair and equitable to holders of the partly paid up Bhares. The Chairman said the course suggested by Mr Morton was precisely that which the directors laid before the meeting. The Chairman proceeding, eaid the question would naturally be asked, Why does tho Gas Company require a larger amount oi capital ? Well, the business had increased to such an extent that necessary additions must ba made to the plant, increased stocks must be provided, and pipes U3sd in tho gas mama wanted replacing. There were also other reasons which arose out of the satisfactory development of the Company's business. A large amount) of capital would be required, bub £25,000 would be sufficient for the present time. The Board were asking them to provide a certain amount of premium capital, which would build up tho strength of the Gas Company enormously, and make the investment of the shares in tho Ga3 Company more solid. For the resolutions 5.305 proxies had boon senb in, and 206 against. Tho Chairman concluded by moving:—(l) That the resolutions Nos. 6, 7 and 8, passed at the general meeting hold on the 6th day of August, 1884, be and the same are hereby rescinded. (2) That the directors bo and they nre hereby empowered to sell by tender, as fully paid-up shares, all shares in the Company which are undisposed of; bub until the 13,743 shares already issued and partly paid-up are fully paid-up, they shall only sell chares concurrently with making a call on the said 13,743 shares ; and that the number of aharoa to be sold from timo to time shall be limited to a number which shall be estimated feo produce a sum about equal in amount to tho sum calculated to arise from a call on the aforesaid 13,743 shares. (3) Thab when all shares heretofore disposed of have been fully called up in accordance with the preceding resolution No. 2, tho directors shall dispose by tender of the remainder of the now chares in the Company as fully paid-up chares, in such numbers and at such timc3 as tho directors! may think tit. Professor Brown seconded. Mr S. Hsskebh said he did nob wish to do anything inimical to the Company, bub he urged that the holders of unpaid shares should be allowed to pay up their full valu9. Mr Ralph Pickmere thought the | director's achema a most feasible and helpful one. Mr G. A. Buttle pointed out tbab they had entered into a bond with new shareholders, and before they broke it they should ba careful. Mr A. Kidd moved the following amendment :—" That the capital required by this Company bo taken from the unpaid capital of the shares." In speaking to the amendment the mover slid it would be the most economical way of bringing up the capital of the Company. Mr I. Alexander seconded. Mr W. A. Thomson supported the amendment.

The meeting was proceeding when we went to press.