CAPITAL WRITTEN DOWN.

New Zealand Herald, Volume LXVI, Issue 20323, 2 August 1929, Page 11

CAPITAL WRITTEN DOWN.

NEWTON KING, LIMITED. I RECONSTRUCTION SCHEME.— ! ADOPTION BY SHAREHOLDERS. PREFERENCE DIVIDEND SACRIFICE. [r.Y TKLEGJUrir.—OWN* COTtUKST'OKDENT.] NEW PLYMOUTH. Thursday. Reconstruction proposals recommended' to shareholders of Newton King. Ltd., by --' public .accountants, were adopted at the- •* ninth annual meeting hold at New I'ly-' ~1. mouth yesterday. ' " itFour meetings were held during the day.'"' 4 First there was the annual general meet-':." ing of the company, then an extraordinary • general meeting of shareholders, then a meeting of preference shareholders, and'"" finally a meeting of ordinary shareholders. - Tho chief business was to consider tha 1 "-* proposals for reconstruction of the com-*'""' pany by a considerable reduction in capi-'"-fal, as recommended by the directors, on the advice of an outside accountant, Mr/' I '"' W. E. Best, of Christchurch, who for some time has been investigating the com- , 1 pany's position with the object of bring-"' ing down suggestions for improvement. In each case the proposals were adopted , by substantial majorities. The chairman ",, of directors, Mr. Truby King, presided over all meetings, which wero well attended. They were not open to the press -, and reports, were supplied subsequently.--Another New Stop. .<*'*• Another new step was the appointment' to the board of a director who is uofi' T a member of the stall, Mr. T. P. 11. Strang,"' of New Plymouth, being appointed un-" _ opposed by shareholders to tho position, "T. Mr, Strang was formerly a member of the directorate of Abraham and Williams, Ltd., and of other commercial concerns. ; The directors who retired by rotation were all re-elected. - ~ The resolutions adopted at the special,. „ meetings were:— ."> (1) That the capital of the company be - reduced from £500,000 (divided into. 250,000 preference shares of £1 each and o. ; 250,000 ordinary shares of £1 each) to . £230,029 ss, divided into 250,000 preferenco shares of £1 each and 200,195 - ; ordinary shares of 3s each, and that such;; r reduction be effected as follows: (a) 8y.:,,;.', cancelling paid-up capital which is unrepresented by available assets to the extent of 17s in respect of each of the' v ; 200,195 ordinary shares which have been" 1, issued and are now outstanding, and by"" reducing the nominal amount of such™ ordinary shares accordingly to 3s pelshare; (b) by cancelling 49,255 of tho..'. existing ordinary shares, which have not. been taken or agreed to be taken by any... person; (c) by cancelling 550 of the existing ordinary shares which have been; ° issued arid forfeited,

Qualification of Directors. ; (2) That article 92 of the articles of association lie altered by deleting the following words: "Qualification of a director' thall be the holding of ordinary or pr«-:i*. ference shares of (he company of the nonii-'. nal value of £500," and substituting there-,,.;,, for the following words: "Qualification a director shall be the holding of at least 500 shares (whether ordinary or pre- r ' : terred) in the company." (3; That preference .shareholders should-.7 forgo three years' cumulative preference „ share dividends, amounting to £54,027 10a:' „

Jn his annual report the chairman of ~ dircctois said that the company had, com- ; pared with 1927 accounts, reduced liuliilities by £132.995. Of this amount '• £51,662 was attributable to operations of- - the period from Hay 1, 1927, to April 30, 1923, and £81.332 as a consequence ' of the past year's working. The chief decreases wero shown in the following items:—Mortgages, £6000; Bank of New .; Zealand,. £106,690; bills payable, £5403; ' , sundry creditors, £2646; estate of Newton King "account, £12,247. Mortgages stood j at £20,340 compared with £26.340 as at April 30, 1928, or decrease of £6OOO. Tliis reduction had been brought about by re-. payment during the year of certain mortgages which had matured. Liability to tha Bank. - Since 1927 the company had reduced. .; its liability to the bank by £106,696, /_ £40.635 being attributable to the period v 1927-28 and £66.061 to this year's working. Bills payable totalled £245 as com-, pared with £4374 last year, or a decrease , of £4129. Over tho last two years this ;«■ item showed a decrease of £5403. Sundry creditors were recorded at £50,589, com- .i, pared with £56.273 last year, a reduc- ') tion of £5684. Compared with the 1927 period this item 6howed a decrease of £2646. The company's liability in respect of tho Newton King estate account aggregated ■< ■ £78,762 compared with £78,220 last year, v thus showing tho small increase of £543.; > for the year. Comparing it. however;;,, with the 1928 period this account showed a reduction of £12,247. Referring to the assets the chairman mid that properties stood on tho balance- " sheet at £113.977 compared with £114.t>93 : ' lust year. During the year the sum of £2174 was written off as depreciation this class of assets and tho sum of £1137 was spent in repairs and maintenance.; Sundry debtors, including bilft receivable;, and bills under discount, aggregated £454.549 compared with £527.585 in 1923 and £550.927 in 1927,"0r a decrease over two years of £96,377. Views of Accountant. Constant attention had been paid to tho book debts and tho directors considered that material progress had been I made in putting the live and operativa accounts of the company on a more sound and stable footing. Mr. YV. E. Best addressed tho meeting,, and informed shareholders that he could say without hesitation that ho felt that if'the shareholders agreed to adopt tho proposals as outlined in his report all -• past losses would bo adequately provided for and tho accounts of tho company would bo placed on a sound footing. Ho stated that ho saw no reason why tho businoss, if the measures of relief ad\o- ~ rated by him were granted, should not bs;; successful in t- 1)0 uml k°. P lace d, in a position to present a satisfactoiy.. annual statement of accounts in futuro. ..-.j Mr. Best said that he fully agreed with tho directors' contention that tho puti-. f(V . I (shed accounts revealed a great improvetnont in tho affairs of the company during IT tlio last. 12 or 18 months. Messrs. Best and Wilkinson, of church, were appointed auditors.