The Banlc of Neiv Zealand.

Nelson Evening Mail, Volume XXII, Issue 241, 12 October 1888, Page 2

The Banlc of Neiv Zealand.

Auckland, October 11. A special general meeting of the shareholders in the Bank of New Zealand was held at the banking house at two o'clock this afterneon. There was a large atten* dance of shareholders, and Mr Geo. Buckley presided. The Chairman moved the following resolution :— That £3 per share of the present paid-up capital of the Bank be, and the same is hereby, cancelled— such capital haying been lost or feeing unrepresented by available assets— and that henceforth dividends shall be paid en such shares as representing- £7 each, instead of £10 each (the original amount thereof), but such reduction shall not interfere with or in any way alter the liability of shareholders to contribute a further sum of £10 per share, as provided by the Banks Act and deed of settlement, in the event of the assets of the Corporation being- insufficient to meet its engagements.

Mr C. B. Button seconded this resolution

Mr Dingle, of Taranaki, criticised the affairs of the Bank unfavorably. He wished to know if the Governmant had been getting property tax on the amount which represented the Bank's deficit.

Mr Cherry thought the shareholders should know more about the loesaa suffered, including those amongat certain directors, He would propose as an amendment, " That before Bgreeing to tho proposal to write off £3 per share, equal to 40 1 per cent of the actual cash paid into the Bank by eharehoidera, it ia desiiable that further and more full information should be Fnpplied." Messrs Bwington and Wallis also spoke on the affairs of the Bank.

Mr J. McCosh Clark urged that the charges referred to in the report should have been specified.

Mr Reader Wood criticised the report unfavorably, and said that if the Committee's report did not give sufficient information, it was only due to the Committee to confess that something more specific should be done in the matter than the passing of two formal resolutions.

Tha Chairman replied to a letter written to the. JV. Z. Herald by Dr Campbell, a former President of tha Bank. He considered that Dr Campbell had been too easy, and had let things be done which ho perhaps disapproved of. He read a minuto from the Bank's proceedings, dated November 14, 1882, as follows : — lt was reported to the Board that after consultation with the mnjority of the Board, tha following reply had been sent : — ' Patetere Company mast not be a failure at the last moment. Lot Itich make the necessary subscription, taking his guarantee irrespective of any guarantee hero, which I am endeavoring to arrange. '" This was a cablegram whioh had beGn sent to London. The chairman spoke strongly as to the manner in which the Bank's money had been apenfc in this instance. At the very last meeting of the Board money had to ba advanced to pay a call of some thousands of pounds or else lose everything. The Chairman, ia the course of gome remarks, stated that legal proceedings would probably have to be instituted with referenoe to the transfer of certain shares to the London register.

Mr Cherry'a amendment vras lost by a large majority, and the resolution was oarrisd. The Chairmaa moved the following 1 resolutions which were carried unanimously :— " That the Directors be empowered to receive from shareholders willing to pay the same, £3 per share to reinstate their shares to the original amount of £10 per share, and on all shares ao reinstated t© pay dividends on the origiaal amount of such shares, provided that such payment to reinstate shares shall not render shareholders liable to pay any further or larger amount than they would have been liable for if shares had remained at 410 each as originally created."

" That the several assets and accounts held for realisation, and outside the category of what may be regarded as ordinary and current business, be liquidated by the Directors as speedily as may be, haying regard to the advantageous relisation thereof, and that m the meantime sucb. assets be transferred to and held and treated in globo in a separate liquidation account, and so that any surplus in realismg 1 any one asset may be set against deficiency in realising any other without ( Continued tm third Page.) ,

I Continued from Second Pace. ) assing such surpluses or deficiencies repectively through the ordinary front and ©s* account." "That ia disposing 1 of the new shares created and authorised to be issued by the special general meeting of the proprietors held on the 3rd of October last, the Board of Directors may make it one of the conditions that payment for such new shares may be made by such instalments as the Board of Directors may think fit, " That the Directors are hereby requested and empowered to apply to Parliament for statutory confirmation of the resolutions paßsed at this meeti»g."