STATUTORY CHANGES

Northern Advocate, 18 July 1933, Page 8

STATUTORY CHANGES

3 ? MAUNGATAPERE DAIRY, COY. /. ■; .• • . i - ;/■:. <K- .♦* '.V;. * • , . * .S. *• 5 CAPITAL INCRRASED. ’ • '13,000' NEW SHARES AVAILABLE. 1 An' increase in share capital from 7000 to 13,000 was made at the annual ineeting of the Maungatapere Dairy Company yesterday. The very large addition was prompted by the growth of the supplying district, an/l prospects of \f further expansion in the near future. : " ,:,i Thechairrfian, Air L. Reynolds, mov.jed -ks.a special 1 resolution; , ~ ' “That - this general meeting of shareholders sanctions an increase of the capital of the company being made by the directors thereof from £7OOO divided into 7000 shares of £1 each to divided into 15,000 shares - ~o£ £l: each. Such additional shares to rank with the present ordinary shares of- the- company and to be issued at such times and on such terms and

. conditions, subject to the articles of .■.. Association, as the directors may prescribe^’C,V;.':' . -IL.Mr .IReynolds said that an- 'increase in - capital was essential. At the present 'time there were no further shares to allot, and a few were supplying import shares: It had been stated that • the increase from 7000 to 15,000, was t 66 big a. jump," but he thought the lattfiy-i figure . was hardly enough. Changes in the articles of association were a costly matter, and it was necessary to Took ahead. The company was originally formed with a capital o? £5000,: and not . so very long ago this had been raised to £7OOO. Had the amount, then been doubled, the expense now. called for would have been un--neeessary. Maungaturoto, a company of similar size, had recently increased its capital to £30,000,, allowing plenty of room, for development of the district.and expansion in output. 'Tbe"m'dtion was seconded by Mr J. H. Haytvard. An* amendment was moved by Mr D. G. M'pxrison that the capital be increased to £20,000. Last year’s butterfat made it imperative for 9000 shares to beV available. Then there were a .number-, of “dry ’’ shareholders,' who were (hot .prepared to quit their holdiing3.;/;These, with those who had oversubscribed their shares, accounted for abtwtf': IfyOOO^ 'shares- The expense of

• , altering the articles of association was about £2O, and a repetition of this should be avoided. Despite quotas or any other depression measures, Mr D. T. Wood, vuho seconded the amendment, said that production in the district was bound to increase. ; The chairman stated that the amendment had been proposed with the full -concurrence of the .directorate, who were inclined to think now that the suggested 15,000 capital would be insufficient. The amendment to increase to £20,000 was carried. Butterfat Basis. Another special resolution agreed to was: “That Clause 11 of the articles of association be altered by deleting the words 1301bs, of butterfat and substituting therefor the words 2001bs of butterfat. ’ ’

ORDERS ON CHEQUES. COMPANY TO. HAVE PREFERENCE. By the addition of three clauses to the articles of association, the Maungatapere Dairy Company yesterday became one of few such companies in New Zealand to have any control over dairy orders issued by suppliers. The following clauses wore added by special resolution. — “The company shall have a first and paramount lien for and shall be entitled to deduct all moneys duo by a supplier or shareholder for share capital, insurance premiums, goods, stores, benzine, merchandise or other chattels supplied by the company to such supplier or shareholder (whether solely or jointly with any other person) from moneys due and to become due to any such supplier or shareholder for milk, cream or butterfat supplied, and no assignment or other disposition, by any such supplier or shareholder' of moneys due or to become due to him shall defeat, impair or in any way affect the rights of the company hereunder to be paid in priority to all such assignments or dispositions. ’ ’ “Any assignment of moneys due by dr from the company to any supplier or shareholder, or any order, direction or authority issued by a supplier or shareholder to the company to pay moneys due by or from the company to such supplier as shareholder to any other person or company, shall be

without prejudice to the rights of the company under the preceding article, and in respect of any such assignment, order, direction or authority the company shall be entitled to deduct for its own use, as an agreed remuneration for extra work entailed in giving effect to such assignment, order, direction or authority, a sum of sixpence for each such assignment, order or authority for each and every month ip or' during which the company shall be bound under the same to make a payment to such other person or company, and such remuneration' shall be a first charge on the moneys of the said supplier or shareholder, and shall be subject to the company’s rights of lien and deduction as set forth in the preceding article.’’ “Each supplier and shareholder, by virtue of these articles of association, absolutely assigns to the company, in priority to any other assignment, out of all moneys from time to time due and to become due to such supplier or shareholder, for milk, cream or butterfat supplied, such .sum or sums as shall be sufficient from time to time to liquidate all amounts; owing by such supplier or shareholder to the company for share capital, insurance premiums, goods, stores, benzine, merchandise or other chattels supplied, or for the debts liabilities or engagements (whether solely or jointly with any other person) to or with the company. Every such assignment shall be deemed of full force and effect as from the date of the coming into force of these articles, and shall take priority over every assignment received by the company, subsequent to the date of such confirmation. ’ ’

In ex-plaining the proposed article?, the chairman said that dairy .companies now had no power legally to deduct payments for goods supplied from cheques. If the supplier objected to this being done, the company was compelled to pay him in full, and collect the money as best it could. Last year the Maungatapere company had drawn up an order, but great difficulty was experienced in getting this signed. The board did not intend, to enforce the charge of fid in all eases, but in hard times the number. of orders was accumulating, entailing a great deal of extra office work, anxiety arid costs, such as extra entries, stamp duties and stationery. The motion confirming the addition to the articles of association was seconded by Mr Morrison, who, in answer to an inquiry by Mr Walker, said that it was not proposed to make a charge for orders. in respect to herd-testing,. etc.

Orders given by share-milkers would also probably go through free. Mr Hayward pointed out that in common law “you can’t pay yourself,” and that orders had to be considered according to priority of receipt. It was a question whether the articles of association could override the Companies Act. The chairman said the alterations had been drawn up by the company’s solicitor. The motion agreeing to the altera-tions-Was put'through without dissent.