THE FARMERS' CO-OPERATIVE ASSOCIATION.

Press, Volume LXI, Issue 18428, 8 July 1925, Page 11

THE FARMERS' CO-OPERATIVE ASSOCIATION.

TO THE EPITOE ;OF "THE PMSS." gj r _Your correspondent, ""Preferred/''asks 'me .to enlighten him further on the legal possibilities or otherwise of capitalisation of, preference iUViderids in arrear. I would suggest that he mAKe-a call on tho « General Manager, who will no doubt be. oulv-*o pleased to advise him on this matter, and any other dtfficult.es }ie : may have. Or perhaps reference to his solicitor or an accountant will elucidate tho position. , \I. might just say, .however, that before' any profits are available tor dividends the present debit balance must first be disposed.of; and it is" considered "reasonable that if the ordinary shareholders agree to meet this out at their capital, the preference shareholders . should, forego their arrears. lersonallv I think, that in view of the fact that A ..and B preference share- ■ holders have no..preference .as- to capital they are bein £ offered treatment which is quite equitable. It would be much more serious to them if they had to ioin in. writing off capital,,carrying as it would a corresponding permanent reduction of dividends . A$ to immediate dividends, 1 cannot speak for the Association but I have never heard it suggested that dividends would be available this year on both preference and ordinary shares. All that tho management has held out is the nrospect of a half year s dividend on -preference shares in September.— ,Yours;.etc, Christchurch, July- 7th.