WHITE CLIFFS GOLD DREDG ING COMPANY.

Evening Star, Issue 8716, 7 January 1892, Page 1

WHITE CLIFFS GOLD DREDG ING COMPANY.

An extraordinary meeting of the shareholders of the White Cliffs Gold Dredging Company, Limited, was held at Watson's Hotel last night, Mr M. Joel presided, and there were eleven shareholders present. Mr J. F. M. Fbaseb, who claimed to represent a large body of shareholders, asked if he would be permitted to attend the meeting, but

The Chairman ruled that as Mr Fraeer was not on the register of the company he had no right to be present. Mr Fbaseb remarked that his registration was deliberately delayed by the directors, and then left the room.

Mr Colclouoh handed a written protest to the secretary ag&inßt the validity of the meeting on the following grounds:—(l) That the meeting was not convened according to law, the articles of association being ultra vires; (2) that the shareholders were intimidated from attending by the articles of association prohibiting their presence if their shares were in arrear for calts, snch articles being beyond the powers conferred by any legal authority, and being ultra vires; (3) that persons were permitted to take part in the said meeting who were not legal shareholders, their shares having been obtained contrary to the registered memorandum of articles of association.

The Chairman explained that the meeting had been called by order of the directors for the purpose of taking into consideration the desirability or otherwise of winding up the company. The company had now been established for some considerable time; and, osiog to a very long delay on tte part of tbe contractor, the opportunities of prorpecling the claim had not been so great as they otherwise might have been; and the success that bad been anticipated had not been met with. The result of working the claim had been that something like LIOO worth of gold had been obtained. The expenses, however, were very considerable; and the directors fonnd that in their present position, if they got in all their realisable assets, when they came to pay their liabilities they would still be some L 270 short, exclusive of the dredge. Of course they had put down in their liabilities a sum of L 944 16a 2d to Mr R. S. Sparrow, and he believed that that would be pretty nearly the amount that would be due to him with the law costs and expenses attending litigation. The company were now plaoed in this position: that they had a judgment hanging over their heads, with the probability of execution being issued within the next twenty-four hours. That being the case, they were placed in the position of Mr Sparrow being enabled to seize the dredge. He proceeded to eay that he believed that a syndicate had been formed to purchase the dredge, which, if sold at present, might be sold at a nominal sum, and the result would be that Mr Sparrow or his syndicate would have the dredge, and the rest of the creditors or shareholders could whistle for their money. If Mr Sparrow or anyone elee even bought the dredge he wonld still be a creditor for. L6OO or L7OO, and the creditors would get very little indeed. Other persons were also pressing the shareholders, ard, therefore, the directors deemed it advisable, taking all things into consideration, to call a meeting of the shareholders, and to advise them to wind up the company voluntarily. Now, the position of winding up the company voluntarily would be this: if they appointed a liquidator and realised upon the dredge differently to what the sheriff would—if they tried to get as much as they could for it—they trusted to be able to pay every creditor 20s in the £, and if they got anything like a fair price for the dredge, to return something to the shareholders as well. That was really what they had to do. There was one party of shareholders who were very desirous that that should not be done so that the dredge might be seized, and the other shareholders left out in the cold. The direotors of the company, however, thought it was their duty to see that every creditor got his fair proportion of what there was to be divided. He wonld move—"That as it has been proved to the satisfaction of this meeting that the company cannot, by reason of their liabilities, continue their business, it is advisable to wind up the Bame, and that accordingly tbe company be wound up voluntarily." In reply to a shareholder, the Chairman stated that the company had not got sufficient without the dredge to pay their liabilities. Their credit was stopped, and they had hardly any money. Mr D. Baxter seconded the motion.

Mr Colglocgu: It appears there was LIOO in the bank the other day, and a large number of shareholders have not paid up. The Chairman said he would not hear any person who had not paid his calls, nor yet allow him to vote. Mr Cololough : I vill undertake to take fifty more shares and pay LSO down if the company go on working the claim. The Chairman : Your best plan is to pay your L 5, and talk for an hour, or as long as you like. Mr Colclouoh said he was not going to do that,

The Chairman stated, in reply to a shareholder, that he understood that tbe claim showed splendid prospects, and so far as it had been prospected the gold was obtained down to a depth of 2ft to 3ft, but no further. The company, however, were not in 8. position to go on working, becauee nothing they could do would prevent Mr Sparrow from taking the dredge. The motion was then put to the meeting and declared to be carried unanimously. Mr Callender was appointed liquidator of the company, at the remuneration of L2O and 2£ per cent upon the moneys collected and the assets realised.