SUN COMMERCIAL SERVICE

Sun (Auckland), Volume II, Issue 608, 9 March 1929, Page 12

SUN COMMERCIAL SERVICE

ANSWERS TO CORRESPONDENTS

’hex” (City): Your best course is to seek the advice of a solicitor immediately. Settler ’ (Cambridge): We have not seen tne prospectus of the concern mentioned, but experience with similar concerns, only strengthens our belief that you will be better dealing in listed securities or, at least in ones' which would attract a wider range of interest Negotiability is a big factor to be looked for in an investment.

’‘Fairfax” (Mount Eden Road): Eight per cent for 1923. The shares cannot be termed a “good investment,” but they certainly have a big speculative attraction. You will notice the market has strengthened over the past week. We think a small parcel as a speculative investment is worth consideration, on present market levels, provided the mine is unwatered within the period mentioned. An examination of the second concern's balance sheets over the past five years shows steady progress, and everything points to the ordinaries being good buving at par. A email parcel to make up a spread of investments is well worthy of consideration. “Junior” (Remuera): The liability of shareholders )» not limited until the cooipany is registered. There is no hard and fast rule as to the time of registration, although copies of memorandum, articles and prospectus may be filed with the registrar prior to actual application for registration. A company is to go to allotment within 90 days of the issue of the prospectus. By that date for the protection of shareholders it is essential that it should be registered. You will notice In the prospectus of the concern you inquire about: “Prospectus of —, Ltd. (a company to be incorporated . . . .”). (2) Yes. (3) Oversight on the part of the Mercantile Gazette. (4) Depends on articles of association. (5* They do not wish to disclose size of their holdings to the public. (6) There is none. The Stock Exchange is considering the. question. (7) We would not be inclined to invest in the concern mentioned at the moment. It certainly has good prospects, but experience in the past with similar concerns has shown that the shares can be bought to greater advantage during the development period.