POSEIDON DIRECTOR REJECTS CHARGES

Press, Volume CIX, Issue 32252, 21 March 1970, Page 18

POSEIDON DIRECTOR REJECTS CHARGES

(N.Z Press Assn.—Copyright) ADELAIDE, March 20. Mr, N. C. Shierlaw, a director of the nickel explorer Poseidon, NL, issued a statement today denying allegations made in the Federal Parliament last night by

the Leader of the Opposition in the Senate (Senator L. Murphy). Senator f'urphy, moving for a Senate select committee to be appointed to inquire into share dealings in Australia, said that opportunities for dishonest practice abounded in Australia’s sharemarket situation. Directors of Poseidon appeared to have bought shares using inside knowledge not available to the public. Poseidon’s geologists—Burrill and Associates—also seemed to have used inside knowledge to buy ..hares before the Poseidon find was made public, he said. In his statement today Mr Shierlaw said: “Burrill and Associates, consulting geolo-

gists to Poseidon, stated In April, 1969, that the Windarra area had good prospecting potential for nickel. They accordingly sought permission to acquire shares in that company. “Their purchases began in April, 1969, and most of them were completed by June 30. The minor balance was bought before the discovery

of nickel and copper sulphides at Windarra on September 29, 1969. “I resurrected Poseidon in January. 1968, for the purpose of prospecting for nickel and other minerals in Western Australia. “Since acquiring these shares in January. 1968. I personally have never sold any Poseidon shares, in spite of major price fluctuations. “My family company— N.C.S. Investments Pty, Ltd, in which I am a minor shareholder, acquired a very substantial parcel of Poseidon shares at the time of the resurrection and it has added to it only by taking up new issues. This company has also never disposed of any of its Poseidon shares. MINOR SHAREHOLDER “In addition, another company—N.C.S. Securities Pty, Ltd, of which I am also a minor shareholder, has pur-i chased Poseidon shares on] the market before the dis-l covery and has never soldi any shares since. Further,] the same company bought additional shares after the, directors announced’ discov-] ering nickel and copper sulphides on September 25. 1969,] and these shares are still] held “It may be overlooked, however, that the stockbroking firm of N. C. Shierlaw and Associates, of which I am the sole proprietor, is required to trade in shares for clients and associates and this must inevitably involve transactions in Poseidon. “With reference to the I allotment of parcels of ] shares, the board of Poseidon distributed to shareholders a lengthy, factual statement before the annual meeting of ] shareholders on December 19. “At this meeting shareholders ratified the board’s action on the basis of a seven to ]one majority, and in doing so clearly appreciated the posiition in which the board was placed in order to raise money for future exploration, and confirmed its actions."

Two Secret Meetings

(N.Z. Press Association)

AUCKLAND, March 20.

The annual meeting of Associated Motels of New Zealand, Ltd, at Logan Park,! Auckland, today was followed by two hours of secret meet-! ings.

An extraordinary meeting and a meeting of noteholders were held, and the chairman (Sir John Allum) declined to make a statement afterwards except to say that the elections of directors had to be decided by poll. T n the year to October 31 the company incurred a net loss of $24,301 when total accommodation revenue fell by 16.6 per cent.