SHARE CAPITAL REDUCED

Hawera Star, Volume LI, 25 May 1932, Page 5

SHARE CAPITAL REDUCED

WESTPORT COAL COMPANY. FROM £500,000 TO £250,000. ' (By Telegraph—Press Association.) DUNEDIN, May 24. An order approving the resolution of the shareholders of the Westport Goal Company to reduce the capital of the eompany from £500,000 to £250,000, was made in the Supreme Court to-day by Mr Justice Kennedy. This reduction is to be effected by returning to the share-holders the equivalent of 10s per share upon the 450,000 shares issued; that is by returning to shareholders a total -sum of £225,000. The sum is to be made available by transferring to the shareholders New Zealand Government inscribed stoek maturing on December 15, 1938, and carrying interest at 4-1 per cent., free of income tax, and by the payment of sums of less than £lO in cash.

Owing to the extensive and increas- .. ing use of oil fuel, the development of hydro-electric power and reduced trade the output of coal has been reduced from 639,000 tons in 1913 to 240,000 tons in 1931. In these circumstances capital is not now required for the development of new areas, and as the capital is in excess of requirements it is produced to reduce it by 10s per share, the money to be paid from the sinking fund specially created by the company in 1904 for the purpose. The company has undertaken to deposit £IO,OOO in the Bank of ’New Zealand as security for the payment of 1 the claims of unpaid creditors.