Sovereign bidder lodges complaint

Press, 3 August 1985, Page 24

Sovereign bidder lodges complaint

Westside Traders, Ltd, the West Coast retail company, yesterday lodged a complaint with the Registrar of Companies, Hokitika, about the notice to shareholders issued by the chairman of Sovereign Gold Mines, Ltd, (in receivership), Mr K. C. Hunt.

The Hokitika registrar, Mr Arthur Fox, confirmed yesterday that a complaint had been lodged by the chairman of Westside, Mr G. S. Smith, about the directors of Sovereign Gold Mines.

“As the chairman of Westside Traders, I feel the company cannot let go unchallenged the document

sent out by the directors of Sovereign Gold Mines (in receivership) in reply to our offer of take-over,” Mr Smith said in a statement to the Stock Exchange. Westside had asked the registrar to take action to ensure that the invetors of Sovereign were given the correct information to enable an informed decision to be made, on the offer. The registrar had also been asked to verify the following details: ® The legality of the alleged directors’ appointments. • The name and address of the secretary of Sovereign Gold Mines (in receivership). "Shareholders must be kept informed of the true situation with their company. “The receivers of Sovereign Gold Mines have made it very clear that should no acceptable proposal for restructuring occur in the near future, the company faces a possibility of liquidation. “Make no error, this is the true position of the company,” Mr Smith said.

Westside intended ensuring that shareholders were given factual information so they could accurately assess the current position. The Hokitika Registrar of Companies, Mr Fox, sent the documents to Wellington yesterday, and he said that any comment on the matter should come “from the top.” The Deputy Registrar of Companies, Wellington, Miss Judith Arnott, said that she was not willing to comment on the complaints from Westside Traders until she had seen the documents. She said she was unwilling to say what might happen until she had seen the documents. The chairman of Westside, Mr Smith, had telephoned her earlier in the day, she said.