FARMERS’ UNION COMPANY.

Lyttelton Times, Volume LXXIV, Issue 9292, 22 December 1890, Page 3

FARMERS’ UNION COMPANY.

MEETING OP SHAREHOLDERS. A meeting of sfiarehokk-ra cf the above Company was held on Saturday at the Clarendon Hotel. Tlu?ro were about one hundred shareholders present, Mr C. H. Walters in the chair. Sir Lougbrey was present as the Company’s legal adviser. The Hon Secretary, Mr C. E. Treherne Hill, read tho Directors’ report which contained the following:—“ln presenting our interim report we have to explain that v; •; have been compelled to call you together, so as to comply with an imperative obligation of the Joint Stock Companies Act, which exacts that within four months o£ tho incorporation of tho Company, which four months will expire on Jan. .17 next, the shareholders must ba called together; and to avoid tho busy time of harvest, we have called you together as early as possible, and wo presume this meeting is for the purpose of explaining to you what has been done, the present position, and what it is proposed to do. Considering there are soma G 33 subscribers holding 6300 shares, of whom about 400 have paid their deposit, and considering the urgent requests on the part of shareholders, . and promises of further and extended support, your Directors have deemed it advisable to advertise for a manager, and commence business so soon as some preliminary matters can be settled. After due consideration of some hundred applications for Manager, and inquiry, your Directors determined to appoint Mr L. C. Williams, formerly Manager of the Farmers' Co-operative, Manager of the Farmers' Union, and his duties will commence with the new year. Some shareholders, we believe, have referred to the method of electing the present Directors. Tho promoters were in ordinary course constituted Provisional Directors, and certain other gentleman having subsequently expressed their willingness in writing to join the Directorate, they were upon that authority duly incorporated. On the registration of the - Company these Provisional Directors became the legally constituted Directors. It may be as well to explain that in starting any new Company there is great difficulty in getting anyone to act as Director, particularly influential gentlemen; and we are persuaded the shareholders' thanks are due to the present Directors, who have had to go through the fire of forming the Company. As you, no doubt, are well aware, gentlemen, so very many Companies are brought to a standstill through the in judicious action of its executive officers; and it falls upon the Directors to see and to stop what must bring any Company, particularly one in formation, within measurable distance of liquidation. A question has . arisen as to the premises arranged to be taken over. We find the position we are in compels us to take over the premises involved in the articles of association at the price named, or liquidate the whole affair. Several shareholders went into the matter of value, particularly in detail, before the Company was formed, and were satisfied to the extent of becoming shareholders. We have seen a certificate from Mr George Hamill, certifying that just prior to the incorporation of the Company, he bad a client willing to take over the promises as they stand at .£4OOO cosh. In considering the matter of commencing business, there are two things that are of supreme importance —money and premises. The question is how are we to obtain the money ? Two ways are open to this end—first, by financing the Company or getting an overdraft; second, by the shareholders taking the Directors into their confidence, and providing the capital. The bank will only grant an overdraft upon the personal security of the Directors or any shareholder, and to gab the confidence of the shareholders the Directors are fully contemplating the necessity of giving that guarantee. .Two remarks made by the bank are worthy of notice here—first, the small number of scares many shareholders hold, arising no doubt from praiseworthy cautiousness; the other, the number of shareholders who, as yet, have paid nothing, a course that, in many ways, militates against the success of the Company. The chief object in successful business operations is to stop leakages, and the payment of interest is a decided leak where it is paid in connection with speculation matters. It is the intention of the Directors to let the Company grow, to ascertain as far as possible the shareholders’ requirements, and to gradually obtain their confidence, and become of considerable benefit to them in finding the best outlet for their grain and produce. Considering all things, the strikes, and the unfortunate dry season, we have every reason to believe, provided every application for shares is a genuine one, that the Company will be a success, seeing that about one quarter of tho nominal capital has been applied for, on an average nearly ten shares per member. In reference to agencies', the first to bo opened will be at Ashburton. From accounts we have received from that district we believe it will largely conduce to the success of tho Company; and therefore it is intended, so soon as matters get somewhat settled, to enter into negotiations for a branch establishment there, and from the expressed earnestness of the Ashburton shareholders, therms not the slightest doubt that however small the beginnings may be, the growth of this branch, together with others that may be established on the Peninsula, Amberley, &c., will be the Company’s strength. By Eule 78 of the articles of association, you will find that the present Directors are empowered to hold office until Sopt. 17 next, but according to Eule 84 the Company can determine the number of Directors in the aggregate. Should it be deemed desirable to increase tho Directorate, there are several gentlemen who have expressed their willingness to act in that capacity. A statement of receipts and expenditure has been prepared up to date, and in conclusion we wish to submit to the shareholders the groat desirability tbat they should voluntarily place in the hands of the Directors the amount of their shares, and so save both interest and expenses.” Several shareholders requested to know more precisely how the present Directors came to hold the office they assumed, and why it was not left to the present meeting to elect its own Directors.

Mr Loughrey explained, showing how they became Directors, and that by tho rules they could remain so ; but to meet the wishes of the - meeting the Directors were quite ready to resign as a body. Mr A. Baddeley proposed and Mr James Reynolds seconded —“That the present Directors remain ia office.” Mr B. M. Stewart proposed and Mr John Musson seconded—“ That the Directors resign.” Tho. Chairman, upon a show of hands, declared the amendment negatived, and the motion was earned. The Chairman, having called for nominations for Auditors, Messrs E. Hill Fisher, A. M. Ollivier and P. E. Wright were nominated, and upon a show of hands the two former were dec!area elected. The meeting closed with vot es of thanks to the Chairman end the legal adviser, Mr Longhrey.