SOUTH BRITISH INSURANCE COMPANY.

New Zealand Herald, Volume XXVII, Issue 8424, 27 November 1890, Page 6

SOUTH BRITISH INSURANCE COMPANY.

Yestbrday forenoon an extraordinary general meeting of the shareholders in the South British Insuranco Company was held at the head office, Queen-street, when the following resolution was proposed:—"That the capital of the company, which now consists of £2,000,000, divided into 100,000 shares of £20 each, be reduced to £1,900,00*), divided into 100,000 shares of £19 each, and that such reduction be effected by cancelling paid-up capital, which has been lost or is unrepresented by available assets, to the extent of £1 per share upon each of the 61,028 shares which have been issued and are now outstanding, and by reducing the nominal amount of all the shares in the company's capital from £20 to £19 per share." There was a fair attendance of shareholders, and Mr. T. Peacock, chairman of directors, occupied the chair. The Chairman said: In moving the adoption of the resolution which has been read in your hearing, it is unnecessary for me to make many remarks, as the shareholders at previous meetings have been fully informed of what was proposed to be done and the necessity for making the reduction of capital provided in the present resolution. I shall content mysolf by indicating the position which our finances will assume when effect is given to the proposals of the Board. In the first place it is intended to take from the reserve fund and investment reserve, which at present stands at; £80,488. the sum of £00,000 as a re-insurance fund sufficient to re-insuro the whole of the company's business, and which from time to time will be kept proportionate to that business. Then of the £64,028 capital to be written off part will be applied to write off the amount of £44,082 standing to the debit of profit and loss in the last balancesheet, and which included the cost of retirement from America. The remainder of the capital written off, £19,940, and the balance of reserve fund, £20,488, making together £40,434, is available to meet the expenses of retiring from the fire business in England and the Continent. 'Any balance of that sum not required for that purpose will form th 6 nucleus of a reserve fund as distinct from the re-insur-ance fund. The resolution was carried without discussion, and the Chairman announced that a special meeting would be held on the l2th December to confirm the action now taken.