MINING NEWS.

New Zealand Herald, Volume LXII, Issue 19171, 10 November 1925, Page 7

MINING NEWS.

THE WAIHI GOLDMINE.

COMPANY'S CAPITAL REDUCED

THE WISH OF SHAREHOLDERS. [from our own correspondent.] LONDON, Oct. 1. Mr, A. M. Mitchison presided yesterday at a special meeting of the Waihi Gold Mining Company, convened as the first step toward enabling the company to return 5s per share of capital to shareholders. The following resolution was submitted : —"That the capital of the company be reduced from £250,000 divided into 500,000 shares of 10s each to £125,000, divided into 500,000 shares of 5s each, and that such reduction be effected by returning to the holders of the 495,907 shares which have been issued paid-up capital to the extent of 5s per share, such capital no longer being required for the purposes of the company's business, and by reducing the nominal amount of each of the 4093 unissued shares of the company from 10s to 5s by writing off 5s per share, and that such return of capital be carried out in accordance with clause 42 ( a a) of the articles of association of the company." The chairman mentioned that after being passed at the present meeting the resolution would have to be confirmed at a second meeting, to he held on October 15. After the confirmation of the resolution, an application will have to be made to the High Court of Justices, and then sundry advertisements will have to be inserted and sundry processes gone through, mainly with a view to ensuring that no creditors are injured by the proposed return of capital^"In our case," said Mr. Mitchison, "there practically are no creditors, but still a good many forms and formalities will have to be complied with and it is difficult for us to hazard a guess as to when we shall be aide to make the repayment, On the last occasion of the return of capital the payment was made to shareholders between four and five months after the first meeting of shareholders, and if the same time is renuired on the present occasion the payment will be made about the beginning of March, but we hope to accomplish it before then, although we cannot say what will be done by the Court. Wo shall do all in our power to put matters through as quickly as possible, but we are entirely in the hands of the law and the taw will take its own time.

" The first suggestion for the return of the 5s per share was made at the annua] meeting held on May 12, when views were strongly expressed by several shareholders in favour ot the course which is being now pursued. The directors would have preferred to postopne the return of capital until the recept by the company of £212,500, due from the New Zealand Government in 1931 on account of the Horahora undertaking, but the financial position of the company is undoubtedly strong and the directors were quite willing to do their best to effect an immediate return of capital if a considerable majority of shareholders desired it." In order to ascertain the wishes of shareholders a circular letter was sent to each shareholder in the United Kingdom and New Zealand, and a reply on an enclosed post card was requested. The result was that 1694 shareholders holding 267,408 shares, expressed their desire that the return of 5s per share should be made as soon as possible while 470 shareholders holding 36,927 shares were opposed to this cousre. A circular will be sent to the shareholders as soon as the requirements of the Court have been satisfied, and full instructions will then be given as to what shareholders will have to do. Certificates must not be sent to the office until then. The resolution, which was seconded by Sir West by B. Perceval, was carried unanimously.