COLONIAL BANK.

New Zealand Mail, Issue 1248, 30 January 1896, Page 42

COLONIAL BANK.

THE APPOINTMENT OF LIQUIDATORS Dunedin, January 22.

A meeting of the shareholders of the Colonial (in liquidation) to make a recommendation as to the appointment of liquidators was held to-day. The late directors, the provisional liquidators, and about 70 shareholders attended.

Mr K. Ramsay, chairman of the provisional liquidators, presided, and explained that the delay in the distribution of the first .£IOO,OOO was due to him. Messrs Larnach and Vigers were acquainted with the Bank's affairs, but he had to thoroughly enquire and investigate before he could sign the affidavit applying to the Judge. Progress had been made despite the holidays, and they had been able to arrange with the Bank of New Zealand to take over several of the accounts, and to relieve several thousands held in reserve against them as security. Negotiations were going forward concerning a considerable number of securities.

In reply to a question, the Chairman said the Bank register closed when the Bank went into liquidation. By 33 to 31, it was decided not to allow those who were not shareholders to remain in the room. This applied to Mr V. M. Braund, of Wellington, and Mr A. C. Begg, who had been suggested as liquidators, and Mr W. C. Macgregor, who had been acting as solicitor for some of the shareholders. The Hon Mr Larnach, Mr Keith Ramsay and Mr W. B. Vigers were proposed aB liquidators by Mr R. Watson. Mr J. W. Bain, of Invercargill, proposed Mr William Brown. In reply to a question, Mr Bain said he would not take office himself.

Mr W. L. Simpson and Mr A. C. Begg were also proposed. Three scrutineers were appointed. Mr Bain asked—Do the provisional liquidators say from their own knowledge that the balance-sheets recently placed before the shareholders were correct ? If not, who are responsible for these balance-sheets being incorrect ?

Mr Ramsay answered that the provisional liquidators had nothing to do with that matter at all. If the balance-sheets were incorrect, the directors were responsible, not the liquidators. Mr Bain asked if the provisional liquidators have had a proposal submitted to them to sell the securities of the Bank at a discount to the Bank of New Zealand, which would mean a release to the Colonial of some thousands of pounds. Mr Ramsay thought the question a most improper one, but he would answer it by a dir' ct negative. Mr Bain also asked whether it was not desirable that the meeting should limit the power of compromise, or make a recommendation to that effect.

Mr Ramsay replied that no such power was yet given, and it rested with the Judge to give or refuse such power. Mr Bain: But he will be guided by an expression of opinion from the shareholders. Mr Ramsay: Mr Haggett tells me that such power cannot be given without the sanction of the Court ; that each individual case will require to be bi-ought belore the Judge. The Hon G. McLean, the late chairman of directors, spoke at length in reply to recent criticisms. He denied absolutely that the directors had sold any shares, and said the directors did not owe the Bank one shilling. During the banking crisis he had put the position of the Colonial Bank as hopefully as possible ; to have done otherwise would have been disastrous. He complained that while these hopeful remarks were frequently quoted, no reference was made to the repeated warnings he had given at the same time as to the danger of the situation. Every word he had spoken on these occasions was fraught with danger. To have spoken otherwise than hopefully would have been to cause a catastrophe. He gave comparative figures to show the large fall in shares of other sound banks at the time of the crisis. Referring to the power of compromise, he said if such was not given and exercised judicially, if every case ' had to be heard in open Court, the result would be a large loss to the Bank. The ballot was then taken. The scrutineers are now at work, but it is somewhat doubtful if the result will be known before midnight. THE RESULT OP THE BALLOT. THE PROVISIONAL LIQUIDATORS TO BE RECOMMENDED. Dunedin, January 22. The result of the voting of the Colonial Bank shareholders is that the provisional liquidators will be recommended to the Judge for the position of permanent liquidators. The voting was as follows: — Votes. Shares. Vigers 4089 95,856 Ramsay 3914 92,228 Larnach 3327 77,629 Simpson 2687 59,912 Begg 2341 48,468 Brown 2023 42,404