SILKNIT (N.Z.) BONUS

Dominion, Volume 30, Issue 154, 27 March 1937, Page 12

SILKNIT (N.Z.) BONUS

One New Share For Two

A resolution that the capital of Silknit (N.Z.), Limited, be increased from £25,000 to £50,000 by the creation of 25,000 shares of £1 each will be considered at a meeting of shareholders on April 6. In a circular to shareholders the directors state it is proposed to distribute 12,500 fully-paid shares to shareholders registered on April 7 in the proportion of one share for every two shares held.

It is proposed to place £12,500 to the credit of a fixed assets appreciation reserve account and to distribute this amount among shareholders in full payment for 12,500 fully-paid shares of £1 each. The shares will bo treated as an increase in the nominal amount of the capital of the company held by each shareholder, and not as income. Where any difficulty arises with regard to fractional shares the decision rests with the directors.

A further resolution is that in view of the position of the company and the inquiry undertaken by the directors as to the value of the company’s fixed assets, it is desirable that the plant and machinery, lease and leasehold improvements should be valued at HO.SS6 instead of the present figure of £8328; also the goodwill and trade marks should be valued at £15,000 instead of £5058. The present capital is £25,000 in fullypaid £1 shares. General reserve stands at £750. A dividend of 121 per cent. was paid last year, 8 per cent, in 193 a, and 12} per cent, in 1934, the first year of operations.