SHARES FOE GUARANTORS

New Zealand Herald, Volume LX, Issue 18530, 15 October 1923, Page 8

SHARES FOE GUARANTORS

TARANAKI MEAT WORKS. DISCHARGE OF LIABILITY. A further meeting of shareholders of the Taranaki Farmers' Meat Company was held last Friday, Mr. Newton King, chairman of directors, presiding. . The chairman moved that the capital of the company be increased from £150,000 to £210,000 by the creation of 12,000 £5 preference shares at a . cumulative preference dividend of 7 per cent, per annum. The motion was carried unanimously. ' ■', It was "then proposed that the 6548 £5 shares in the capital of the company which had not been issued should in future bo called preference shares, noncumulative, and ranking, for dividend next to the 12,000 preference shares proposed to be issued. Mr. King said the idea was that the balance of the original shares which had not been allotted should be given to the guarantors in full discharge of their claims against the company. , The position did not occur to them at first, but when they consulted the company's solicitor about it, it was pointed out that the guarantors who had paid £37,000 would have first claim against the people who were now investing money in the works. This could never be and they had to get rid of the guarantors some way or other. The suggestion was therefore made by the solicitor that these shares, which had not been allotted and which to-day were of no value, should be given to the guarantors in discharge of- the £37,000 they had paid, hence, the motion he now proposed. The motion was carried without dissent. : 1 ' • The election of directors was deferred until next meeting. '