NOT TO LIQUIDATE.

Auckland Star, Volume XLVII, Issue 172, 20 July 1916, Page 7

NOT TO LIQUIDATE.

. I NEW ZEALAND HOME BUILDERS. NEW DIRECTORS ELECTED. Attended by some sixty or seventy shareholders, the extraordinary general meeting of the New Zealand Home Builders. Ltd.. held in the Auckland Chamber of Commerce yesterday afternoon, to consider the report, of the committee which has investigated the affairs of the company, decided not to go into voluntary liquidation, ac recommended by the committee, and elected a new directorate to carry on. There were several women amongst the audience, and by an almost unanimous vote the meeting decided to make the proceed- ! ings public. Mr. M. V. Wheeler presided.

Mr. B. Dive, chairman of the InvcstigaWon Committee, reported verbally on tho results of the committee's activi- ; tias. He reviewed the steps taken in connection with getting control of the unplaced securities, and remarked that although difficulties were experienced at j first in getting fair advances against , them, this was overcome as time went ( on. and financial provision had now , been made to meet all liabilities. At ( one time they were threatened on all , Hides—he believed there were nearly 100 , summonses pending—and circulars Wore cent out to creditors asking them to ! , withhold their claims. In the majority j of cases the creditors met them. Speak] ing of the valuations of stocks, thej [speaker said the valuers had been in-j structed to go on the careful side, bj- \ cause it was in the interests of the. 'shareholders that the realisation should' !be in excess of the valuation. Alluding to the balance sheets drawn up by Mr. Grierson, Mr. Dive said that despite the difference in method »f manipulation of figures, the committee's balance sheet was near the mark, and showed the true position of the company to-day. REASONS FOR LIQUIDATION. Regarding the recommendations of the committee. Mr. Dive said that he could furnish the committee's reasons for them if it was desired, but they preferred, to make the bald statement and aek the meeting to put the recommendations into effect. The reason why they were advocating liquidation was that at tho present time the balance sheet showed a loss of something like .£20,000. In other words there wae a discrepancy between their balance sheet and tho original one of about £37,000. He did not think that the shareholders would ■believe that the discrepancy had occurred over the last seven months; in hie opinion it had occurred throughout the existence of the Association. He pointed out, however, that to continue operations in the ordinary way fresh capital would be required, and, while they lecognised that the idea at tho bottom of the company was a pood one, they failed to see how they could advise the shareholders to continue if they had not the capital to do it with. If they tried to finance on their securities to put up new buildin.ffrt it would be a loss to the shareholders. The speaker mentioned that five out of seven of the committee approved the recommendations, but since then two of the number had joined the other two in suggesting continuance. I'ossibly they might make a success of the thing eventually, but he still believed that liquidation was the best solution of the difficulty. He moved:

"That the present directors be asked to retire and thnt a new board of directors be elected, and that legal proceedings be taken against such persons as counsel may adviso." RESIGNATIONS REQUESTED.

Seconding the resolution. Mr. M. H. Hampson suggested that it should be adopted without discussion. On be half of the Investigation Committee he expressed eympathy with Professor Segar and Mr. S. T. Rossiter, who went on the directorate at the last moment with the sole object of assisting the shareholders.

Mr. Wake suggested the separation of the two resolutions on the ground that the paesing of the proposal to ask the directors to resign would be grossly unfair to at leaet two of them, who had really endeavoured to come to the rescue. Another speaker expressed similar views.

The resoiution was then put to the meeting and carried without,opposition. Mr. Hampson moved, and' Mr. Dive seconded a resolution to go into volunary liquidation. The latter admitted, however, that in view of the desire for continuance already expressed by those representing shareholders, it would not be possible to get the requisite 75 per cent vote. Mr. M. J. Bennett, a member of the Investigation Committee, who signed the report favouring continuance, said that he had taken up that attitude in view of the large number of country shareholders who were opposed to liquidation. Ten shareholders voted for the resolution and some 50 or 60 against. NEW DIRECTORS.

In view of the fact that in the Articles of Association it is competent for a shareholder with one share to be a director, it was decided to announce the holdings of each candidate for the new directorate, and, in order to overcome technical difficulties, the newdirectors were formally added to the present directorate, which gave the aEGurance that it would retire. The ■ballot resulted as follows: —Messrs. S. T. Rossiter, W. Andrew, F. T. Mauneell, M. J. Bennett, G. L. Winger, B. Dive L. T. Bisson. We are requested to point "out that of the retiring directors Mr. M. V. Wheeler (who two months ago resigned but was requested to continue) wae appointed in January last, and that Messrs ißossiter and Segar were appointed as recently as March.