VICTORIA NYANZA SUGAR COMPANY

Otago Daily Times, Issue 21997, 5 July 1933, Page 8

VICTORIA NYANZA SUGAR COMPANY

TO THE KDITO.f Sin, —The circular and notice of meeting sent to shareholders by the' directors of the Victoria Nyanza Sugar Company disclose an extraordinary position. The directors of this company are also directors of the East African Coffee Company, and a. former director of the two' companies made use of approximately £10,00,0 belonging to the Sugar Company for tlie purpose of assisting the finances of the Coffee Company. Nyanza shareholders are now asked to overlook this eccentric method of dealing with their funds and to agree to postpone the debt for a period of 10 years, without interest for the first five years. The original appropriation was injurious to the shareholders of the Sugar Company, and the present suggestion is obviously in the interests of the Coffee Company. Victoria Nyanza shareholders are to be asked "to authorise the directors to give time or any other indulgence with or without payment of interest to any debtor of the company, subject to such terms and conditions as the directors shall from time to time think fit." Such a wide resolution would give these gentlemen power to make use of the funds of the Victoria Nyanza Company to bolster up any concern in which they are interested, solvent or otherwise. As all the Australian directors of the Victoria Nyanza Company are on the Kast African Company's board, shareholders should be careful to whom they give proxies. Distant shareholders need not give proxies to anyone, as Melbourne shareholders will endeavour to protect (heir own interests, and in so doing will protect the interests of all. —I am, etc.. One of Them. East Melbourne. June 24.

Other Letters to the Editor appear on page I 1.