A SATISFACTORY YEAR

Evening Post, Volume CXX, Issue 105, 30 October 1935, Page 13

A SATISFACTORY YEAR

GUARANTEE CORPORATION

ARTICLES ALTERED

A satisfactory year's business-was re--ROrted at the annual meeting of tha New Zealand Guarantee Corporation, Ltd., today, by the chairman 'of •directors, Mr. \V. Thorpe. Comparing this "year's balance-sheet with that of last year, he said that ! under the heading of assets properties ! at cost were at practically the1, same r figure, less a small amount written off 1 for depreciation. The properties of i the company were now all fully, let i and returning interest on mortgage, jj as well as on equity. Bills receivable , showed an increase at £33,000 due to business recovery. Under liabilities; , capital mortgages on property were' E the same, and reserves had increased - to £30,000, due to the £10;000 added ■ after the last annual meeting. The- - net profit for the year was much lower than that for last year, but it had been 1 pointed out at the last annual meeting that the year's profits' recorded then' • had been abnormal, being derived' 5 mostly from non-recurring items. Even " so, the profit for the past financial year was much lower than had been anticipated a short while ago, and to | pay the .dividend recommended by • the. directors the carry-forward would ■ have to be reduced by about £1000. , FINANCES STABLE, Referring to rumours that had been : current regarding the state of the com- ' ; pany, Mr. Thorpe assured shareholders • that its finances were quite stable;-' and i nothing had occurred that could have ■ made them otherwise. . . : : During the year business had steadily i improved and advances shojved a substantial increase over the ' previous , year. It might be interesting to I shareholders, he said, to learn that I since the inception of the company l dividends paid, including' th» latest,' i amounted to £155,645, and advances i had amounted to close on four jnil- ■ lions. ... ' ' i ' i The outlook for the future looked i satisfactory and justified the anticipation of a successful year. The bank •■ overdraft was gradually regaining a more satisfactory position. The success of the company, of course, depended on the use it could make of other' people's money, including the bank ■ overdraft. Competition in. the money market was still keen where reasonable security could be found, but even with the present competition, the company could afford to look forward to a successful future. The report and balance-sheet were adopted unanimously. On the recommendation of the directors it was decided to pay a final divi- . dend at the rate of ljd a share on ordinary shares. The retiring directors, Messrs: W. - ', Appleton and Thorpe, were re-elected unopposed, and Messrs. Walkins, Hull, Wheeler, and Johnston were reapjpoin';ed auditors. For the remuneration "OC: the directors, £300 was voted to the : chairman and £ GOO to be divided among the remaining directors. : EXTRAORDINARY GENERA!* . . . • MEETING.. "■■ •" .. / ■ . An extraordinary ; general meeting was held at the close .of the annual meeting to consider a special resolution regarding the reduction of the number of directors from seven to five, and to elect five directors if the-reso-lution was carried. ' The chairman explained that the. board felt that the business, of the company could be carried on, without any loss of efficiency, by five directors instead of seven. The Articles of'the - corporation provided, under Article 91, that until otherwise determined by the company in general meeting the number of directors should not be less than five nor more than seven. He . then moved "That Article 91 .Of the' Articles of Association be amended" by deleting the word 'five' arid substitutling therefor the word 'three' arid by deleting the word 'seven' and substituting therefor the word 'five." I The resolution was carried . unanimously, and to give effect to it, the directors resigned and a further' election was held. The following directors were elected:—Messrs.- W. Appleton, K. D. Duncan, F. R. Hogarth, G. W. Magnus, and W. Thorpe. ' ..