GEAR MEAT COMPANY

Otago Daily Times, Issue 22022, 3 August 1933, Page 10

GEAR MEAT COMPANY

PROPOSED CAPITAL REDUCTION DISTRIBUTION OF STOCK ASSETS. (Per United Press Association.) WELLINGTON, August 2. . An extraordinary general melting of shareholders in the Gear Meat Preserving and Freezing Company, Ltd., will be held at the company’s offices on August 16 to consider a proposal by the directors to reduce the capital of the company by one-half. In a circular to shareholders, signed by Mr Allan Strang, chairman of the board of directors, it is stated fiiar the company holds New Zealand Government inscribed stock, free of income tax, worth £319,225 (face value). Since the recent reduction of interest upon such stock from 4 \ per cent, to 3J per cent, the lidding has become of less value to the annual finance and the directors are satisfied that it is unnecessary for the .company, all the properties of which are free from encumbrances, to retain so large a liquid asset. The hoard has therefore decided to recommend share holders to approve of a distribution pro rata of £230,000 (face value) of the stock. As a necessary result of the return of a capital asset the nominal capital of the company must be reduced from £460,000 to £230,000 and the tl fully paid shares to 10s, fully paid. Resolutions appended to the notice convening the extraordinary general meetings define the terms of the proposal which shareholders are invited to approve. The proposal does not and cannot, it is stated, in any manner affect the business of the company or limit its profits except to the extent that its profit and loss accounts will no longer contain an annual credit of interest on the stock distributed. It will still possess a liquid asset of £89,225 worth of stock (face value). The law requires that no reduction of the company’s capital shall have effect unless it is approved by the Supreme Court. If the special resolutions are passed by the meeting now convened and are confirmed by a subsequent meeting application will be made to the court for the necessary order. If and when the coml order is made the director will be empowered and will proceed to give effect to the proposals.