RULES FOR THE MANAGEMENT OF MINING COMPANIES.

Otago Daily Times, Issue 151, 10 May 1862, Page 5

RULES FOR THE MANAGEMENT OF MINING COMPANIES.

As it is not improbable that a number of small companies may shortly be formed; for the purpose of systematic milling in Otago, we have thought it advisable to lay, before our readers the following code of rules, which have been found useful in Victoria, and which in fact form a tolerably complete deed of partnership. We are indebted for this code to the Inglewood A dvertiscr, in which they are prefaced with the following remarks :—

The following code of rules we consider applicable to compauies ot twelve or twenty, such as those holding amalgamated claims and formed under the mining bye-law;- the ■ labor being performed by thu shareholders or their representatives^'lt is found by experience that this plan of mining will not work well with more than twenty shareholders. As many of the working men are shareholders, it is difficult to adopt measures to compel them to work with energy and efficiency. The Board of Management should be required to visit the workings nt stated intervals, that they may be competent , to decide on the questions brought before them by the manager.; The latter will have the carrying out of tbe^la"n of working sectioned by the Board, of which he will be an exqfficio member, acting on his judgment in all matters of detail, but before commencing any important works, or effecting any material change, he will lay his plans in writing before the Board for their approval. In the conducting of companies much disatisfation and loss will sometimes arise from disputes as to authority between the Board and the manager of the works; and to prevent this the duties of botil should be clear] v i defined. The members of. the Board .should not all retire at once. The following code has been tested and amended by a successful company, and some slight alterations and additions have since been made:— ' RULES AND. REGULATIONS. Memorandum op. Agreement, made and entered into this....; day of ', 18 (one'j thousand eight hundred and ). between the miners, being shareholders, in a claim situated , consisting-of six acres. ; We the shareholders in the said claim do hereby ' agree to become mining partners, in so far as shall ' concern the said claim, under the style and title of the " Gold Mining Company," and do ' ■hereby bind ourselves to submit to the following Rules , and Regulations now passed, mutually to work the . aforesaid claim, and to divide .all Hold, moneys, or ; other materials, as may become the property of this ' Company, in virtue of the co-partnership, in such a manner as hereinafter described, viz: 1. The Company shall consist of 20 (twenty) shares, which shall be represented by a like number of working men. 2. This Company shall be governed by a Board of Rlauageuient, consisting of a Chairman, Secretary, | Treisurer, and two members, who shall hold, office ' . for 8 (three) months, and be eligible for re-election ; i such election to take place in August, November, February, »nd May. " ! '3. Such Board shall have power to arrange as to' the best method of \verking the ground, and shall see I their decisions duly carried out, and have power to call a special general meeting when such is deemed necessary by them. ' I 4. The duties of the Chairman shall be to conduct ! all meetings, to carry into effect the rulea and dcci- ' sions of the ; Board of Management, 'alsoy the fulfil-1 j ment of all cbntraotsentered into by thorn; butshallnot ■ enter into any agreements or take any important steps in connection with the affairs of the Company, without ' the concurrence of the majority of the -Board of Management. 5. That a Secretary be elected, who shall retain all books and other such documents as may become the Company's property, and shall hand over the same to the Board of Management when leaving office j and that the said books and docmnents be audited by the i Board of Management on the last Friday in every month, and at all reasonable times be accessible to the inspection of the Company. 6. Thata Treasurer be elected, whose duty shall be to receive all gold or money due to, or belonging to., the Company, and shall, along with ane niembor or the Board of Management, see the same safely deposited in the name of the Company in the bank or treasury, and - shall not withdraw the same without his denature and that of the Chairman or Secretary ; nnd shall in no case pay cash on account of the Com- I pany without the bill or accounts being signed by .the ! Secretary or one member of the Board of Management ; that the Treasurer shall, in every case, render I to the Company a receipt iri full of all cash payments ' made which shall be retained by him until his accounts ■have been audited by the Board of Management, i when they shall be handed to the Secretary. ! 7. That a book containing the names of all regis- , tered shareholders, shall be. kept by the Secretary, i who shall have no power to transfer any. parts of shares, but only the whole share. No -share shall be considered lejfjal without the signature of the Secre- i tary, and being regularly registered in the transfer book of the Company. No dividend shall be paid ta any one but the registered shareholder, or his order, i a. Divisions of gold or dividends shall be made at | Intervals not exceeding 14 (fourteen) days, or after each crushing. ... 9. That no man shall be allowed /to work on the ground, either as a working shareholder.or a substitute, unless he is nble to perform a fair day's work and otherwise meet the sanction of the majority.of the shareholders. ■ - ' • 10. That no shareholder shall be permitted to work in a state of intoxication ; and any shareholder so coming or sending a representative to work in such a state shall be fined as the Board of Management may decide. 11. All shareholders shall be bound to bq on the ground to commence work at the hours appointed by the general body of shareholders, and in the event of any shareholder being behind' the Y proper t\vafi, the Board of Management sh^ll have'power' to" employ a .man in his place", or charge him according to the scale of fines of- the Company; 121 That no shareholder shall at any time lend or wilfully destroy, or carry off the ground, any of the Company's property; he or they so doing shall be I dealt with according to law. 13. That <\ny person spcreting or carrying a^y a,ny gold or specimens without being duly authorised ' by the Company, shall immediately forfeit all right and title in the said Company, and be expelled for ever, and given up to the authorities to bo doolt with according ro law. ' . . 14. That should any shareholder meet with an ac-cident-while employed on the Company's works, his interest shall .be held good until his recovery, free of expenses, savo and except tbo necesßwry working 1 expense?.

15. No shareholder shall at any time pledge the naun; of the Company for eit'iur good* or money, or bring the Company inio any liability whatever, except by being duly authorised by t!ie "Company^ 16. Tlmt should any disputo arise, or complaint in ref'Tence to anything connected with the Company, the majority of the sliarehoider>can at nny reasonable .time, throuirli the Secretary of tliii Company, call a special nv:eting of the Company. 17. That the Boaid of Munaooraeat shall have power to make such calls as they may deem necessary for the efficient working of the Company, and all such calls didy made and advertised and not paid witliin fourteen days after such call shall have been made, the share shall be forfeited to the Company, and they will have the power to dispose of such share or shares, deductiug all calls or expenses due upon such share or shares, the balance to be Lauded to the holder of the scrip. 18. That any shareholder tendering for any contract for work to be done connected with the mine, shall not bo allowed to vote in that special case. 19. The above rules and regulations to be the standing rules and regulations of the Company, the Board of Management to make such bye-laws and regulations as may be deemed necessary for the efficient working of the Company; the Secretary to sue and be sued at law for, or in the name of, the Company.