DAIRY COMPANY SHARES.

Auckland Star, Volume LIX, Issue 198, 22 August 1928, Page 4

DAIRY COMPANY SHARES.

THE BIG "COMPANY. NEW SYSTEM OF ISSUE. (By Telegraph.—Own Correspondent.) HAMILTON, this day. A new system of share issue in the New Zealand Co-operative Dairy Company was foreshadowed by the general manager, Mr. H. H. Sterling, at the annual conference of suppiers' committees of the company at Hamilton yesterday. A remit was forwarded from the Waihi committee, "That any shares issued from now on be called 'C' shares, these shares to be resumable under the existing conditions, at their 100 per cent value, on condition that new capital be sufficient to cover the resumed shares. In the event of there being insufficient new capital to pay out the full value that these shares be resumed at as much in the £ as the new capital will cover, no 'C share to be resumed by the company at less than 15/ in the £." Mr. Sterling said the company had now grown to such a position of financial strength that the directors considered that new shares could be allotted on the fully paid-up basis. The speaker said he considered that what had hitherto given people a distaste for taking up shares in co-operative companies was the outstanding liability. This. Mr. Sterling regarded, however, largely as a bogy. Under the new scheme, the new supplier would enter as a fully paid up shareholder. The directors believed this would go a long way towards attracting new suppliers. Mr. Dynes Fulton (chairman of directors), said the position of the old shareholder would not alter, but the admission of new shareholders would be made easier. The position of the old supplier had been improved. It was a sign of progress that as time went on admission was made easier. A few years ago, when the company was not properly stabilised, the present proposal could not have been entertained, but now that the paid up capital amounted to £5,056,000, they were in the position to take the action proposed. Ihe new supplier coming in would receive ais bonus on the butterfat covered by the fully paid up sliares. The Waihi remit was lost.