COMMERCIAL F.T.C. directors win the day

Press, Volume CXV, Issue 33929, 23 August 1975, Page 18

COMMERCIAL F.T.C. directors win the day

CN’euy Zealand Press Association!

AUCKLAND

There were signs of dissension among shareholders of the Farmers’ Trading Company, Ltd, at a meeting proposing conversion of the company’s preference shares into ordinary’ shares.

The company plans to convert the A.B. and C. preference shares into ordinary shares on a two-for-one basis. A shareholder at the wellattended meeting yesterday suggested that the conversion would result in a decrease of 8 per cent in earnings per share.. Preference shareholders would be given shares worth 200 c on market value in re-

lation to current preference market value of between 100 c and 133 c, depending on class. Another shareholder said

he failed to see why preference shareholders should make substantial capital gains at the expense of ordinary shareholders. He also asked why, after taking risks, should ordinary shareholders subsidise preference shareholders for poor investment decisions. He suggested the preference shares should be converted on a basis related to market value. Ordinary shareholders. It was suggested, had over the years made substantial capital/ gains and therefore it was now the turn of others. The chairman (Mr R. H. Busfield) said that savings resulting in reductions in classes of shares would mean the elimination of the cost of four dividend cheques a year. However, the directors — with the aid of proxies — carried the day: 1294 shareholders voted in favour, and only 10 against. The Companies Act requires such a measure to be passed with a majority of 75 per cent The voters of 4,825,334 were in favour, and 7970 against.