EQUITABLE INSURANCE ASSOCIATION.

Evening Star, Issue 8479, 2 April 1891, Page 3

EQUITABLE INSURANCE ASSOCIATION.

An extraordinary general meeting of shareholders in the Equitable Insurance Association of New Zealand was held this afternoon. The chairman of directors (Mr J. B. Callan) presided, and there were about forty-five other shareholders present. The Chairman, after shortly referring to the reasons why it was proposed to wind-up the company, read the agreement that had been come to between the Union Insurance Company and the Equitable Company. He then moved—“ That the agreement bearing date the 18th day of February, 1891, made by the directors with the Union Fire and Marine Insurance Company of New Zealand, Limited, for the reinsurance of tho Now Zealand fire business and all the marine business of the Association, be, and tho same is, hereby confirmed,” Mr F. Meenan seconded the motion. Mr S. M'Cabthy asked what was the position of the life policies. Mr Maxwell, general manager, replied that the liability of the life department had been brought down from L 60.000 or L 70,000 to L 25,000, and there was at present pending the completion of an agreement with a powerful insurance company to take over all the policies of the life department. As soon as that was completed the shareholders would be relieved of all liability. Ho expected that this agreement would be completed in two or three months. Mr G. W, Russell (Christchurch) asked what was the profit derived from the Union Company. Mr Maxwell replied that that question could not be answered, as calculations concerning it had not been gone into. Mr Russell said it was shameful that no answer was returned to his question. He proposed to move an amendment to the motion the chairman had laid before them, and it was as follows :—“ That in view of the heavy losses shown by the Association’s position, and of the doubtful results of the winding-up as proposed by the directors, shareholders are of opinion that the question of the confirmation of the sale of business to the Union Company should be postponed until a committee of investigation have inquired into the whole affairs of the Association, such committee to have full power to make inquiry into all matters relating to the Association, the advantages or otherwise of the proposed sale, and to call for all papers, books, etc., the following gentlemen to form the Committee:—Mr J. Bevan, Mr J. Gore, and Mr G. W. Russell; and to be paid actual expenses only, and to report within six weeks from this day,” The Chairman : You cannot put it. He went on to explain that the Companies Act gave power to appoint inspectors, but when it was suggested that they should be paid he would point out that there was no power to pay them. The fact was that the directors bad not the slightest objection to any committee of inquiry. The meeting was for a special purpose, and no motion or amendment to pay a committee could be introduced. Mr Russell said that under these circumstances he would strike out the part of the motion referring to payment, and the amendment could then be pat. He then went on to speak as to why such a motion should be passed, Mr J, Gore seconded the amendment.

After very considerable ' and at times somewhat heated discussion, the matter was carried unanimously on the understanding that the proposed committee of five (Messrs Bevan, Gore, and Russell, together with two members to be named by the directors) should have the full powers of inspectors under the Act.