PUBLIC SERVICE STORES.

Dominion, Volume 1, Issue 126, 20 February 1908, Page 7

PUBLIC SERVICE STORES.

MEETING OF''CREDITORS

IN FAVOUR OF: LIQUIDATION.

Another lrieo.ting pf creditors of tho. Public Sorvico 'Co-operative' Association',' Ltd.', was' held last night;,. Thero were... twenty creditors in attendance; and Mr. F. W. C. liaybittlo was again votcdito the chaii The Chairman explained that at the previous mooting there' Was; sbnio discussion, on tho question of placing the;;ostato -in ■ tho hands cf cither ■> a private assignee or tho Official- i Assignee.:. for,, •;realisation. It was-' .rdecided, however, : that before steps". in. •that,''..dircc- ' tion wor taken, the 'opinion -of Mr.'H. : .DiBell, K.C., bo obtained,wjth ; referoncp. to the position of tho Association in regard to its contract with Messrs.- M'Millan/Fred'eftc;' and Mortonsen, of Shannon, for tho supply and delivery to the Association of .from .20 to 45 boxes of butter per Week, tho'contract' having still seven months to run. The legal opinion had come to hand; and was to the effect that the contract was binding on tho contractors to deliver to any person to whom the ■ Association or /the j liquidator of tho Association might assign. In conclusion, Mr. liaybittle remarked that it would appear- that tho contract ; was a valuable asset. -• ■■ ■ 1 ■ A creditor inquired 'if the' contract. '; had been violated ill any way.' - : V ~-" ' '. Mr. Robieson,' ohairman- of„ .directors,;; repliod in tho-negative.-- The-contractors ;wero, , he said, quite willing.to.resume\the delivery, of butter when tho' clirront. account was met. -. -.- -• ■■'.!■: v ,''-'' 1 A creditor:. Is it.a .fact that't-ho Company owes a large amount to the'contractors? . • .Mr. Robieson: Tho nniouut owing is £35, and it is duo on' March 3. A creditor: Have any offors for. ,tho contract beon received? " . Tho Chairman: Two have come to hand. Mr. Shirtcliffe thought it would ho inadvisable to discloso tho-amounts of tho offers. It would be hotter, he said, to, invito tenders for the contract. Some discussion as to whether tlio'i affairs of tho Association should 'be placed in the hands of a private -.assignee! or' the Official . Assignee ensued. ." ■ . . •' Mr. Fell stated that", the creditors' could not appoint a liquidator., All tliey could do, was to pass a resolution ' asking the direc-. tors to have tho Association voluntarily wound up, or' a creditor icould file .a. petition asking tlio Court to hnvo the Association wound up. -. 'i - -' ' The Chairman said Jie understood thai/ the directors were prepared to accede to the wishes of the creditors. ,Mr. Robieson pointed out. that, before : tho Association could "go into volr.ntary liquidation, it would ho necessary to call. a meet-' ing of shareholders. -Fourteen days'--notice would have to be given j two-thirds of tho shareholders would requiro-to-bo . present;; and the votes, of three-fourths of-those in. attendance would nee'd-.'to : be in 'favour of tho dissol ltisn. , '. -■•• Mr. Jfcll, at this stage, said that if a creditor or creditors petitioned the Cpurt, the affairs of the Association'would'be placed ill the. hands of the Official Assignee.' In his opinion the best course to; adopt would bo to arrange with a creditor to iilo a petition.; Mr. Robieson was'.of opinion''tliAt' ifci would be bettor to allow tho' shareholders' an opportunity to pass a resolution in favour of' liquidation; and, if : that course failed,, application could bo made to;tliti Court."'Then, again, it would, .lie "thought," bd' tetter to leave tho matter of tho sale-of the Contract in tho hands of tho.'-Assooiation, and givo them an opportunity 'to ; reduce the; grocery stocks. In his opinion,, half the stock could bo got rid of iu a fortnight;- There'were, ho stated, over nino hundred shareholders in tho Association. It was unanimously resolved, oil the motion of Mr. Shirtcliffe,\ secondod by Mr. Turnhull, that tho Chairman and tho creditors' solicitors (MeSsr£:"ij3ell, Gully, Dell and Myers) bo requested'tb take whatovor steps may bo necessary to havo tho Association placed in liquidation forthwith-- rr ~ j - Tho judgment creditors assured the liicet-. ' ing that they would not proceed further if there was no delay in the matter of placing tho Ass(>ciatio|i in liquidation. On tho motion of Mr. "H.'lleid,"seconded by Mr. Turnbull, it- was agreed- that it be a recommendation to tho Court that Mr. H. A. Gold he appointed liquidator. ' After a resolution had beon passed that i the legal expenses incurred ' lieforo liqiiida- : tion should be bonio by tho estate, the meet- < ins adiourned ■