CO-OPERATIVE DAIRYING.

Auckland Star, Volume LXVII, Issue 151, 27 June 1936, Page 4

CO-OPERATIVE DAIRYING.

MORRINSVILLE COMPANY. NEW SHAREHOLDING BASIS. (From Our Own Correspondent.) MORRINSVILLE, Friday. An extraordinary general meeting of shareholders of the Morrinsville Co-opera-tive Dairy Company, Limited, approved the proposals brought forward by the directors for altering the basis of shareholding. The phairman of directors, Mr. J. E. Leeson, who presided over about 50 shareholders, explained that the rapid growth of the company during the past 14 years had made its financial position very strong. Mr. Leeson said it was now desired to ease the incidence of shareholding. Deductions of Val per lb of butterfat for the six flush months were sufficient to provide the capital necessary to carry on the company, whereas in the company's first fewyears the deduction for share capital was %d per lb. When the company was formed 14 years ago the customary basis of shareholding was one £1 share for every 701b of butterfat supplied, but now the basis could be altered to one share for 1501b. The effect of the proposed alterations to the company's articles of association would be that new shareholders would bo allotted fullypaid up shares at the end of each season, instead of contributing shares as previously. This would make it unnecessary to increase the capital of the company again for many years. To equalise matters for the old shareholders it was proposed that they could have their shares resumed at full value instead of 75 per cent of value, as at present. New shareholders would have their shares resumed at 75 per cent of the full The chairman's motion that the articles of association be amended was seconded by Mr. R. A. S. Brown and carried without a dissentient voice.