Company News NEW MILBURN MOVE

Press, Volume CII, Issue 30054, 12 February 1963, Page 16

Company News NEW MILBURN MOVE

Fresh Meeting On Rugby (N.Z. Press Association) DUNEDIN, February 11. The directors of the Milbum Lime and Cement Company. Ltd., Dunedin, have called an extraordinary general meeting of shareholders for March 6, to consider the issue of share capital to the Rugby Portland Cement Company, Ltd., of Great Britain. After a similar meeting was adjourned late last year, errors in procedure regarding the issue of a block of shares to the English company were noted. A new special resolution, which has the unanimous backing of the five directors of the company, will be considered at the meeting next month. The directors see the issue of share capital as a prerequisite of their immediate plans for the company which are, with the technical and financial assistance of Rugby, to erect a new works at Weston, near Oamaru. In a memorandum to shareholders, the directors "note that at the December meeting criticism was levelled at various aspects of the proposals. No point was raised which had not been considered by the directors and none had caused them to change their minds, the memorandum states. 27s 6d a Share If authority is given to issue shares to Rugby, the price will be 27s 6d a share. Though this is less than the market price, the directors state that account must be taken of the benefits that will accrue. If the resolution is passed, Rugby will have 21.4 per cent, of the shares and the same voting power. Control, therefore, remains with the existing shareholders, and Rugby has undertaken not to purchase further shares without the approval of the directors. No merit is seen in a suggested bonus issue of shares, but it seems possible that a issue will be made later. Because of the delay that has occurred it has been agreed that the date on which the shares should be issued will be immediately after the close of the present financial year and that Rugby will not be entitled to any dividend declared in respect of the present year. The directors strongly recommend the approval of the ordinary resolution recommending the issue, and also of two special resolutions. One concerns the ratification of Articles of Association, and the other the deletion of the 15,000 voting limit on shares held.

These two special resolutions require a three-fourths majority.