COMMERCIAL Flood of proxies to Mr Fairey

Press, Volume CXI, Issue 32705, 7 September 1971, Page 21

COMMERCIAL Flood of proxies to Mr Fairey

(New Zealand Press Association) WELLINGTON, September 6. Mr H. E. Fairey, of Waikanae, a holder of 24,000 Broken Hill Proprietary Company, Ltd, shares, has received a flood of proxy forms from New Zealand shareholders since he announced three weeks ago that he was willing to represent them at the annual meeting on Wednesday.

He will also take a sheaf of letters of support for hisj

icontention that shareholders deserve a better deal from | B.H.P. Encouraged by the shareholder support he has received, Mr Fairey said he I might stand for election to ithe board next year. Mr Fairey today released I some of the questions he I wants answered at the i board’s meeting in Mel- ; bourne. They include: ■ Did the directors have the . power to appoint themselves en bloc as directors of Hematite Petroleum Company, Ltd,

without the authority of B.H.P. shareholders? (Referring to the provision of s2lm for deferred tax in the Hematite Petroleum accounts, why should the principle be applied to Hematite Petroleum and not to other members of the group? It is understood that the sitting directors, in their efforts to be re-elected, requested proxies from the large institution shareholders. Who pays the cost of obtaining these proxies—the company or the directors personally? The shipbulding industry throughout the world is in the doldrums. What is the position of B.H.P.s shipbuilding operation at Whyalla and what is the profit or loss far the last year? According to recent reports, B:H.P. is now drilling and exploring for oil entirely on its owh account. Why has it apparently departed from its previous very successful partnership with Esso? Is it a fact that under the arrangement with Mount Newman, B.H.P. receives a very large amount of iron ore at a price below the normai selling price? Had B.H.P. sold the iron ore which it received under this special arrangement at the price it received for the balance of its share of the ore from Mount Newman, by what amount would the profit from the Dampier Mining Company, Ltd, have been increased?

What is the total capital expenditure by Hematite Petroleum Company, Ltd,, and Groot Eylandt Mining Company, Ltd, which qualifies income as tax exempt? What were the director’s reasons for deciding to give shareholders a one-for-ten bonus issue of

shares? In place of the bonus issue, why could not a bonus issue of debentures or convertible notes be made from capital reserves? This would give shareholders a reasonable return on their funds and at the same time allow the company to deduct the interest paid from its profits before tax.