DONAGHY'S ROPE AND TWINE COMPANY.

Auckland Star, Volume XXXVIII, Issue 163, 10 July 1907, Page 3

DONAGHY'S ROPE AND TWINE COMPANY.

SPECIAL COMMITTEE'S REPORT.

(By Telegraph.—Press Association.)

DUNEDIN, this day.

An extraordinary general meeting of shareholders in Donaghy's Rope and Twine Company was held this afternoon. Mr. J. L. Passmore (chairman of directors) said that they were called together for the double purpose of altering the articles of association and to receive the report of a special committee empowered at an ordinary meeting to investigate the share transactions of original vendors. The altered conditions of the company demanded modern regulations, as many of the old ones were now out of date. It was necessary to insert in the articles provision for the reduction of capital, and the directors took advantage of the occasion, on the advice of their solicitors, to modernise the articles. He moved that new and additional regulations, as submitted to the shareholders, be approved. The motion was carried. The chairman of the special committee then . read the share- transactions of original vendors. The special committee summarised their conclusion as follows: — "The transfer of many of the Dunedin allotted shares for a nominal consideration to persons who afterwards sold to outsiders concealed from the public the identity of the real vendors, which, if known, ought to have considerably affected the market value of the shares. The omission of goodwill from the balance-sheet was decidedly wrong. The inflation of the plant, building, and land account, by a sum paid for goodwill, was calculated to mislead, and was the first step in thjj production of a balance-sheet which did not fairly and truly represent the position of the company."