THEATRE CHANGES.

Auckland Star, Volume LXIX, Issue 138, 14 June 1938, Page 4

THEATRE CHANGES.

I. C. WILLIAMSON, LIMITED. NEW COMPANY FORMED. DETAILS OF CONTRACT. Shareholders of J. C. Williamson, Limited, at an extraordinary meeting in Sydney last week, unanimously supported a resolution to transfer the theatrical side of the company's business to a new pany, with a nominal capital of £ 103.0(H), now known as Australian and New Zealand Theatres, Limited. Mr. John 11. Tait, chairman of J. C. Williamson, Limited, salt! that, provided the new company could live up to its obligations, J. C. Williamson, Limited, would ha\e a suiplus of about £.>2.000 a year from all sources, after providing 101 income tax. As it would only take £32,700 a year to pay 0 per cent on all shares, it could be seen that, if the new company could observe its obligations, the shareholders could expect such dividends from this date. Of the new company's nominal capital, £73,000 had been underwritten by approved shareholders, Mr. Tait said,_ and the new company would call up 7/6 a share and the balance as required. '"J. C. Williamson, Limited, ' Mr. I ait continued, "has agreed to lease its trochoid theatres, stores and workshop lor 21 years, and to sub lease the theatres and stores held under lease. In addition, a license will be granted by this company to the new company to use our copyrights for a period of 21 years. The new company will acquire the scenery, wardrobe and theatrical properties. "The new company will contribute toward the salaries of present managing directors, and will pay the salary of the London representative, Mr. J. Nevin '1 ait. Mr. Frank Tait will act as one of the managing directors of the new company, and will be there to repicsent the interests of J. C. Williamson, Limited. Messrs. E. J. Tait and John H. Tait will act in a consultative and advisory capacity, and they will also look after the interests of J. C. Williamson, Limited. "The total annual payment to be made to our company by the new company for the whole of the above will be approximately £36,000, payable by weekly instalments. Out of this sum our company will have to meet its outgoings to its landlords, rates, taxes, interest and insurance. "For scenery, wardrobe and properties, the new company will give a debenture to cover the purchase price. As security for due performance of the agreement, and pavment of the rent, the new company will deposit £12.702 cash. Should the new company within 12 years go into liquidation, except for the purpose of amalgamation or reconstruction, provision is mttdn whereby this company can prove an a creditor for £23,000 as agreed liquidated damages."