THE P. AND O. COMPANY

New Zealand Herald, Volume LVI, Issue 17253, 1 September 1919, Page 6

THE P. AND O. COMPANY

CAPITALISATION SCHEME.

MEETINGS IN LONDON.

COMPLAINT OF SHAREHOLDERS.

[BY TELEGRAPH. —OWN CORRESPONDENT.]

DUNEDIN. Saturday,

I New Zealand holders of P. and 0. | deferred stock who handed over their stock for management to the P. and 0. Colonial Stock Trust, Ltd.whose office in New Zealand is in the office of the Union Steam Ship Company— surprised to learn that a circular, dated London, June 26, has been issued to the P. and 0. stockholders in London, in which, certain recommendations are made, of w.fevjh. they have received no intimation. Holders ai New Zealand are- vitally interested in all the deliberations of the P. &v 4 0. Company, and they think that they ;>ie entitled to receive any information which, the holders in England are supplied with. The circular referred to reads;:—

[ "Enclosed you will find herewith a notice of two extraordinary general meetings of the above-named company, which ale being convened for July 3 and 18, 1919, for the passing and confirming of a special resolution for the alteration of the regulations of the company by inserting in them a new regulation designed to enable the company to capitalise all or any part of its undivided profits by issuing to the shareholders entitled thereto, against the amount so capitalised, fully-paid stocks of the company at present unissued, anl also to enable the company to pay dividends in specie by distributing stock or other specific assets in satisfaction of the amount desired to be distributed. You will also find enclosed a notice of a separate meeting of the deferred stockholders, which is being convened to pass a separate resolution sanctioning such modification of their rights as is involved in the adoption of the new regulation. It will probably be within your knowledge that in recent years many companies have thought it desirable to capitalise their undivided profits with a view to conserving their reserves and so strengthening their capital position and also with a view to bringing their store capital account more into accord with the value of their assetn, as compared with their liabilities. Although no definite scheme of capitalisation is now proposed, it is thought that the present will be a convenient time to alter the regulations of the company by taking the requisite powers and also at the same time to make power to pay dividends in specie, a convenient power which, though possessed by many companies, is not at present included among the powers conferred by the regulations of this company." What happened at the meetings referred to is, of course, not known by New Zealand shareholders.