COMPANY RUMPUS

Grey River Argus, 19 June 1925, Page 6

COMPANY RUMPUS

Di RE( TOK DEl'O.SEi>. ALLEGED FAVQIHI i 15.,,. AIASI l-.RT'- a. -I’liu* IS. As a result of a circular issued to te shareholders by the Directors o! the (.bmbined Butchers Ltd., ai>eg* ing the preference shareholders directors weir conduc.ing the business | of tin- company to the dofrinumt oi the ordinary shareholders. A meet ni-.'. was held hci’e at which the ca>e wa s heaid from both I I* lh< bit-son (Director) and E. W Wa:'O (unl.il reci'ntly managing direcioil sponsored the circular, ami I-. iay lor (('hairmin of Directors) (Irlemlot! the actions oi the Boar'l oi Docctors Robivson said ten preierenee share*at CIO each gave the holders the righ to a dividend of 1 per cent, on <il> goods purchased by the company up to CUM),OOO. Preference shareholders held voting papers equal To 25 percent of all voting held by ordinary shareholders, and th e right in appoi: half the directory while the Jmlanee ot the shareholders of a nominal capital of U‘250,000 received no benefits, and it was alleged their interests wc»‘e being prejudiced by the designs ot the preference shareho’ders. Ino circular alleged extravagant and inc.'iieient methods were being introduced ta the disadvantage of the ordinary shareholders, and that an effort was contemplated to amalgamate the company wi'th the Combined Buyers o* Auisitj-aija, a small company which had consistently lost m< ney till ?**_'• It was further alleged the preference directors gained control and engag n d their own staff at high salaries, v, i efficient employees were superseded After a lengthy acrimonious debate, The following resolution was carried unanimously; — ‘‘That the o airarapa sharehoTders having heard the views of Messrs Taylor and Wallis (o-rga nosing salesmen), on their a? (ions re the conduct of the business, and having heard the views of two ordinary sha.reili'cjderjj’ Messrs’ Robieson and Watts, resolve emphatically to endorse, the action of the Wellington shareholder-directors as outlined in the circular, and recoi l their protest at the inequitable control of the company exercised by Hie preference shareholder directors, • recommend that Thomas Taylor be removed from his office of Director, and that the number of ordinarv shareholders be increased; and further that it be a recommendation t,the meeting of shareholders to be held at Wellington on June 25, unless the preference shareholders’ interests can be eliminated, and the con trol of the company be vested in iirectors elected by the ordinary shareholders, with a view to placing the company on a sounder basis that the company go into voluntary liquidation.