SHARLAND AND CO., LTD.

Evening Post, Volume CXII, Issue 116, 12 November 1931, Page 15

SHARLAND AND CO., LTD.

ANNUAL MEETING

The annual meeting of shareholders of Sharland and Co., Ltd., was held today, Mr. W. Watson presiding. In moving the adoption of the report and balance-sheet, particulars of which have' been published, the chairman said:— "Like most public trading companies Sharland and Co., Ltd., has suffered during the past year from, diminution in trade, and consequently in ■ profits, i The company has also suffered from the j disaster of the earthquake in Hawkes Bay where our business was ; and still is, very important. Almost total _d(. struction having overtaken the premises and stocks of many of our valued customers in that district, it was considered advisable for the company to make full and adequate provision to meet the emergency, which is reflected in the heavy bad debts figure shown in the profit and loss account. "Reviewing the balance-sheet it will bo seen that tho item of stock is £21,402 less than last year and book debts £4235 less. These have- been roduced in line with the company's lowered turnover, whilo on the'other sulo the liabilities have been reduced by •£21,888j £1000 has been paid off the goodwill account. . "In the- profit and loss statement the moss profit shows £5151 less than last year, and the expenses £4587 less. Tho reduction in gross profits was of course owing to the universal depression in business, and the general management is to be commended for the saving in overhead and other expenses. '' Notwithstanding what may bo termed an unfortunate year I have pleasure in saying that the state of the company is sound, and that the shares are undoubtedly worth much more than the market quotation. We have been able to recommend a dividend of 6 per cent. for tho preference shares as provided for in the prospectus of their issue, and, had it not been for tho Hawkes Buy disaster, at least a similar dividend would be available to tho holders of the ordinary shares. AH known bad debts have been provided for and stocks have been taken at the usual bedrock values. It is of course impossible to know when business will improve, but improve it surely' must in time, and, oven if tho current year turn out no better than tho year past, there will be hope of resuming dividends at 'the usual rate on both classes of shares. "I now movo the adoption of tno report and ' balance-sheet which, it passed, will carry with it the immediate payment of the dividends of 6 per cent, on the preference shares and 3 per cent, on the ordinary shares." DIRECTORS' HONORARIUM. Mr A. Hamilton said he thought that the directors should accept a smaller honorarium. If he was m order, ho would like to movo that they accept a reduction.' , In reply to the chairman, Mr. Hamilton said ho understood that tho directors received £750 a year. The chairman said he could only say just now that they would take tho matter into consideration. _

Mr. Hamilton pressed for an opinion from the shareholders on the question. Mr J. W. Jack said that m these hard times there was very much lore call on the directors' capabiliti.es. The amount the directors received was not excessive. There was no douLt .that tho directors were going through trying times, and he would oppose the suggestion to reduce the honorarium. Mr. E. G. F. Zohrab opposed Mr. Hamilton's suggestion, and held that directors in New Zealand generally were paid too little for their services. Ho was rather inclined to think that this was a time for strengthening rather than paying out, and as much as he appreciated a dividend, from tho company's point of view it might be better to pass a dividend. The report and balance-sheet were adopted. On tho motion of Mr. Watson, seconded by Mr. J. W. Jack, Colonel A. A. Corrigan was re-elected director. Mr. J. W. Jack (Wellington) and Messrs. A. and J. Grierson (Auckland) were re-elected auditors, on the motion oi Mr. E. G. F. Zohrab, seconded by Mr. W. Watson, jun.

A motion of thanks to tho directors and staff, moved by Mr. E. Coyle and seconded by Mr. A. Hamilton, was carried.