N Z. HOME BUILDERS, LIMITED.

Waipawa Mail, Volume XXXVI, Issue 7753, 25 July 1916, Page 4

N Z. HOME BUILDERS, LIMITED.

NOT TO LIQUIDATE. In view of the fact that a large number of residents in Waipawa and district are financially interested in the New Zealand Home Builders, Ltd., the following report of an extraordinary general meeting held at Auckland will he of interest: — Attended by some sixty or seventy shareholders, the extraordinary general meeting of the New Zealand Home Builders, Ltd., held in the Auckland Chamber of Commerce to consider the report of the committee which has investigated the affairs of the company, decided not to go into voluntary liquidation, as recommended by the committee, and elected a new directorate to carry on. There were several women amongst the audience, and by an almost unanimous vote the meeting decided to make the proceedings public. Mr M. Y. Wheeler presided. Mr B. Dive, chairman of the Investigation Committee, reported verbally on the results of the committee’s activities. He reviewed the steps taken in connection with getting control of the unplaced securities, and remarked that although difficulties were experienced at first in getting fair advances against them, this was overcome as time went on, and financial provision had now been made to meet all liabilities. At one time they were threatened on all sides—he believed there were nearly 100 summonses pending—and circulars were sent out to creditors asking them to withhold their claims. In the majority of cases the creditors met them. Speaking of the valuations of stocks, the speaker said .the valuers had been instructed to go on the careful side, because it was in the interests of the shareholders that the realisation should be in excess of the valuation. Alluding to the balance sheets drawn up by Mr Grierson, Mr Dive said that despite the difference in method of manipulation of figures, the committee’s balance sheet was near the mark, and showed the true position of the company to-day. REASONS FOR LIQUIDATION. Regarding the recommendations of the committee, Mr Dive said that he could furnish the committee’s reasons for them if it was desired, hut they preferred to make the bald statement and ask the meeting to put the recommendations into effect. The reason why they were advocating liquidation was that at the present time the balance sheet showed a loss of something like £20,000. In other words there was a discrepancy between their balance sheet and the original one of about £37,000. lie did not think that the shareholders would believe that t he discrepancy had occurred over the last seven months; in his opinion it had occurred throughout the existence of the association. He pointed out, however, that to continue operations in the ordinary way fresh capital would be required, and, while they recognised that the idea at the bottom of the company was a good one, they failed to see how they could advise tin* shareholders to continue if they had hot the capital to do it with. If they tried to finance on their securities to put up new buildings it would be a loss to the shareholders. The speaker mentioned that five out of seven of the committee approved the recommendations, hut since then two of the number had joined the other two in suggesting continuance. Possibly they might make a success of the thing eventually, but he still believed that liquidation was the best solution of the difficulty. He moved: “That the present directors be asked to retire and that a new board of directors be elected, and that legal proceedings be taken against such persons as counsel may advise. ’ 1 RESIGNATIONS REQUESTED. Seconding the resolution, Mr M. H. Hnmiison suggested that it should he adopted without discussion. On behalf of the Investigation Committee lie expressed sympathy with Professor Segar and Mr S. T. Rossiter, who went on tile directorate at the last moment with the sole object of assisting the shareholders. Mr Wake suggested the. separation of the two resolutions on the ground that the passing of the proposal to ask the directors to resign would be grossly unfair lo at least two of them, who had really endeavored to come to the rescue. Another speaker expressed similar views. I lie resolution was then put to the meeting mid carried without opposiI ion. Mr llainpsnn moved, and Mr Dive "'de.l a resolution to go into voluntary liquidation. The latter admitted, however, that in view of the desire tor continuance already expressed by those representing shareholders, it would not he possible to gel the requisif e 75 per cent vole. Mr M. .1. Bennett, it member of the Investigation Committee, who signed the report favoring continuance, said that lie had taken up that attitude in view of the large number of country shareholders who were opposed to liquidation. Ten shareholders voted for (lie resolution and some 50 or 00 against. NEW DIRECTORS, view of the fact that in the Articles ol Association it is competent tor a shareholder with one share to lie a director, it was decided to announce the holdings of each candidate for the new directorate, and, in order to overcome technical difficulties, the new directors were formally added to I lie present directorate, which gave the assurance that it would retire. The ballot resulted as follows: Messrs S. T. Rossiter, W. Andrew, F. T. Maunsell, M. .1. Bennett, 0. L. Winger, IS. Dive, L. T. Bisscin. We (“Slur”) are requested to point out that of the retiring directors Mr M. V. Wheeler (who two months ago resigned hut was requested to continue) was appointed in •Innuary last, and that Messrs Rossiter and Segar were appointed ns recently as March.