BUILDING SOCIETY

Te Awamutu Courier, Volume 55, Issue 3938, 11 August 1937, Page 6

BUILDING SOCIETY

TWENTY-FOURTH ANNUAL MEETING. PLANS FOR NEW GROUP. The annual meeting of shareholders of the Te Awamutu Terminating Building Society, held on Monday evening, did not attract a large attendance, six of the nine directors -and three ordinary shareholders, besides two Cambridge Building Society directors, comprising those present. Mr F. J. Gilbert, chairman of directors, presided. The annual report (already published), and balance-sheet were adopted without discussion, the chairman remarking that he proposed accordingly “with great pleasure.” Only one tender, that of Mr A. D. Sing at the upset price of £BO, was received for the £4OO appropriation in No. 2 Group, and this was accepted. The secretary reported the re-elec-tion of Messrs J. T. North, T. Finch, and W. J. North, to the directorate, unopposed. Discussions ensued on the subject of creating a third group, and preliminary arrangements were made for an active canvas to ensure that applications for 400 shares are lodged before going to allotment. It was agreed to amend the rules of the Society to enable the holder of two shares to lift £5O-3 in the new group, instead of £4OO as in the two earlier groups. Mr J. L. Callaghan was unanimously re-elected shareholders’ auditor. The directors’ fees were fixed at the same as last year. FINES AND PENALTIES. When reference was made to the advisability of reimposing the fines and penalties provided for in the rules, the secretary, Mr G. O. Jourdain, explained that some years ago the rules were not enforced in the second group because the Cambridge secretary had net imposed fines there (the two Socities united for the purpose of Group 2), and therefore it was unfair to fine Te Awamutu shareholders in the same group. The directors had approved that action. He added that if there was fear of hardship on any shareholder who may overlook payment ni the due date, there was provision for avoiding fines by paying as far in advance as one was in arrears. This applied alike to subscriptions and repayment of appropriations. It was decided to revert to the practice of imposing fines and penalties as provided for in the rules, but not to enforce this provision until October Ist, thus giving shareholders ample time to realise the position. In connection with the No. 3 group, it was provided that a two-share member can draw £5OO, for its weekly payment of 2s, -and the repayments will be at the rate cf 3s 4d per £lOO per week; thus the weekly repayment on £5OO will be 16s Bd. A one-share member could obtain £250 for his Is weekly subscription, repayable at 8s 4d per week.

£50,000 LOANED. It was pointed out during the discussion that the Society has already loaned nearly £50,000, and of that amount fully three-fourths was used to erect homes, so that the influence of the Building Society in enabling people to become home-owners was very considerable in this borough and neighbourhood. Discussion arose as to the functions of directors, and it was urged that with No. 1 group being wound up there was nowadays no need for so many directors. A motion to reduce the number from nine to six, when the rules are next revised, was carried unanimously. Complaint was voiced about the long period during which shareholders’ pass-books are held for auditing purposes, and the secretary said delays could be overcome by not calling in pass-books until the auditor is ready to handle the books. He undertook to observe that principle for the future. NEW GROUP’S PROSPECTS. In a general discussion on the prospects of the new group, three major points of interest tc all shareholders were made. The Society is a savings bank and more, for it is a compulsory savings bank, members being unable to withdraw their lodgments for seven years. This ensures regular savings. As every alternate appropriation is free of interest, the winner oa. tains the money absolutely free of interest, and if the fortunate one has insufficient security the appropriation can be sold for the winner’s own benefit-—for prices up to £lOO, which amount would be clear profit for the subscriber, and thus enable him to have adequate security for any further appropriation that came his way. If the appropriation is tendered for the loan can be obtained more cheaply than in any other wav at rates from 24 to 34 per cent. The terms are also easy, for the subscriber pays only Is per week per share, and each will give the subscriber an opportunity of obtaining £250 free of interest or at a very low rate. Two shares would give a shareholder the right to an appropriation of £5OO. Repayments are also easy, as an appropriation of £5OO by ballot would be paid back at the rate of 16s 8d per week —thus at the end of eleven years the full amount would have been repaid. The chairman urged all directors and shareholders to try and get the minimum of 400 shares quickly, and mentioned how advantageous for young peoole the Society’s methods were in encouraging saving.

The meeting closed with a vole of thanks to last year’s director o .