M. GUARANTEE CORPORATION

Evening Post, Volume CXVI, Issue 102, 27 October 1933, Page 9

M. GUARANTEE CORPORATION

REDUCTION IN CAPITAL'

In his address at the annual meeting of the New Zealand Guarantee Corporation, Ltd., yesterday, Mr. Sidney Kirkcaldie said that the company had found it necessary to seek investments outside those intended when the company was started. That the policy was a wise one was shown by the fact that these investments now covered thirty-five different companies and institutions. The return by way of dividend, added to the i appreciation of today's market price, also! justified the policy of the directors. The instalment business put through during the year was £75,212, the lowest on record. The total amount of establishment charges, £18,410, had been discharged out of profit during the first four years of the company's existence. The total amount of dividends paid, in- j eluding those now recommended, was £141,085, equal to 65.8 per cent, of the paid-up capital. In addition a general reserve had been created of £20,000. .The balance-sheet disclosed that on August 31 the company had in the bank £4539 2s 3d in.cash and £29,000 on fixed deposit. These amounts had since been increased by the realisation of assets to £76,000. v REDUCTION IN CAPITAL. The chairman said the reduction of the shares to 3s each, with no further liability, should provide adequate capital for immediate necessities, and the directors were convinced that should an addition at any time be required, it could be easily obtained without going beyond the present shareholders., Intimation was given by the chairman that steps would be taken to re* duce the number of directors from seven to five. " There was an attendance of sixty-six, shareholders. The report and balancesheet were adopted and the directors' recommendations in regard to dividends were carried unanimously. Messrs. Hogarth and MacEwan, the retiring directors, were re-elected, Mr. Veitch withdrawing his nomination. The resolution in regard to the reduction of capital was also carried unanimously, subject to confirmatiou at a further meeting to be held on November 10.