UNION STEAM SHIP COMPANY

Otago Daily Times, Issue 15825, 25 July 1913, Page 8

UNION STEAM SHIP COMPANY

• POLICY OF RECONSTRUCTION. . CAPITAL TO BE INCREASED. For some time past various statements and rumours have been mado concerning the proposal of the Union Company's directors to increaso the capital of. the company by a substantial amount. Tho exact details were of course withheld, but tho information vouchsafed was sufficient to cause tho shares in that prosperous and progressive concern to harden considerably about a month ago, and in the meantime many people have been speculating as to what shape tho proposed reconstruction was likely to take. Matters assumed, a definite shape yesterday, when circulars wero forwarded to shareholders calling a meeting curly in September to liquidate the present company with a view to forming a new company with a capital of £3,000,000 in 4,000,000 shares of £1 each, of which 2,000,000 will be ordinary 6hares and 1,000,000.wi1l 1m per cent, cumulative preference shares. Theso shares will be allotted to shareholders in the proportion of one ordinary and one preferential for every ordinary share now held in the present company. Tho other million ordinary shares will bo held in reserve for futuro issue. The main features of the scheme of reconstruction, shortly put, are as follows: 1. A now company to bo formed with the same name as the existing company, and with a capital of £3,000,000, divided into 3,000,000 shares of £2 each. Opportunity has been taken to enlarge tho objects of the company, and theso will be lound set out in the memorandum of association of the new company. 2. The undertaking and assets of tho existing company to bo made over to the new company, upon the footing, that the new company shall undertake all the debts and liabilities of tho existing company, and shall pay all tho costs of winding it up and dissolving it, and all the costs of carrying the reconstruction scheme into effect; and, further, shall allot to every member of tho existing company claiming tho same in respect ot every £1 share in tho existing company held by such member one £l ordinary share iully paid up in tho now company, and in addition thereto one £1 preference share fully paid up. The said preference sharo to carry a fixed cumulative preferential dividend at tho rato of £5 10s per centum per annum on the capital for. tho time being paid up thereon, and such other rights as are mentioned in tho articles of association of the new company.

3.. Tho directors of tlio existing company to be the directors of the new company. 4. Tho reconstruction to bo carried out under section 259 of " The Companies Act, 1903," and accordingly the existing company to go into voluntary liquidation, and to authorise the liquidators to carry out tho reconstruction immediately, 6o that there mav be no interruption of tho business.

5. With all convenient speed the existing company to be dissolved.

It is generally understood that the proposals to bo submitted at tho forthcoming meeting of shareholders will bo tho prelude to a vigorous policy involving considerable expansion of the Union Company's extcnsivo business after the reconstruction schcmo has been sanctioned by the shareholders.