“Share Swap Beneficial”

Press, Volume CIX, Issue 32005, 4 June 1969, Page 19

“Share Swap Beneficial”

The proposed share exchange between Trustees Executors and Agency Company of New Zealand Limited and National Insurance Company of New Zealand Limited is in the [best interests of Trustees Executors.

The directors of Trustees Executors say they are convinced of this, although National Insurance will hold

25 per cent of the capital. As already reported, the two companies propose to exchange 50,000 shares each. In a circular to shareholders explaining the move and the necessary alterations to the articles of association, the Trustees Executors chairman (Mr N. C. Speight) says that directors very carefully considered the proposal before recommending it to shareholders. “One director has maintained opposition to the amendment of article 64 which provides one vote for each share held, on the grounds that this would provide National Insurance with a large block of votes, i.e., 25 per cent,” says Mr Speight. “The remainder of the board consider that National Insurance is entitled to at least this right in return for the substantial investment in the company, and that the immediate benefits to shareholders and the future opportunities of our company far outweigh any disadvantages which may possibly accrue from this change. “No changes are contemplated in the directorate or management.”

Changes in the articles which shareholders will be asked to approve at the annual meeting on June 23 involve the retention of the limit of 5 per cent of the issued capital by one shareholder, but specifically exempts National Insurance. A change will also be made in the article which at present limits the vojtes held by one person on a poll to 12. The new article gives each shareholder one vote for each share held. Shareholders will also be asked to approve the one-for-two bonus issue but National Insurance will not participate. The accounts of Trustees Executors for the year to March 31 show that group net profit rose by $2261 to $30,816 after provision of $BBB less for depreciation at $10,315 and $2719 more for tax at $28,946.

The steady 12 per cent dividend takes $12,000 and earning rate on unchanged capital of $lOO,OOO rises from 28.5 to 30.8 per cent Shareholders’ funds rose from $318,420 to $342,228. The value of assets under administration now stands at $65.8m.