Company News ACRIMONIOUS MEETING

Press, Volume CII, Issue 30062, 21 February 1963, Page 19

Company News ACRIMONIOUS MEETING

Kauri Timber Move Argued

(N2. Press Asm.—Copyright) MELBOURNE, February 20. Heated exchanges between shareholders .and the chairman, Sir Alexander Fitzgerald, marked the packed meeting of the Kauri Timber Company, Ltd., today. One shareholder asked Sir Alexander Fitzgerald how he had the "audacity” to ask for fresh capital from shareholders without offering to change the management.

The shareholders' meeting was the first of four called by the Supreme Court They will consider a scheme of arrangement for the company. A trading loss of £1,059,642 for the two years to August last has been reported by the company.' The scheme of arrangement outlined at today’s meeting involves the raising of additional capital by offering shareholders five shares for every four they hold. Sir Alexander Fitzgerald told the meeting it had not yet proved possible in the time available to underwrite an issue of £lm including £750,000 in shares. He said that a minimum of £lm was necessary to enable the company to go on.

"Alternative is Liquidation”

“If the issue cannot be underwritten we will abandon the scheme. I believe it is the only proper and practicable scheme and that the only alternative to its adoption is liquidation,” he said. Asked by shareholders why results for the last four months had not been presented to the meeting, Sir Alexander Fitzgerald said accounts were not completed. However, a profit of £200,000 to August, 1963, was forecast. A shareholder: A potential underwriter would need more information. Why isn’t it available to us?

Sir Alexander Fitzgerald: A prospective underwriter has been given the same information as you but in more detail which it would not be proper to present to this meeting. The meeting was adjourned until tomorrow after the chairman announced that although voting was incomplete the scheme was certain to be adopted. The motion requires a majority in number and three-quarters in value to be passed.