AFFAIRS OF COMPANY

Wanganui Chronicle, Volume 75, Issue 244, 15 October 1932, Page 9

AFFAIRS OF COMPANY

N.Z. REFRIGERATING, LTD. ADMINISTRATION CRITICISED MEETING OF SHAREHOLDERS. Further details are available of the extraordinary meeting of shareholders of the New Zealand Refrigerating Company, Limited, held in Christchurch last week, when a committee of three shareholders was set up to confer with the board of directors on matters of administration and policy. The committee will report to a further meeting on November 30, when the question of amending tho articles of association to provide for an increase in the number of directors from five to seven and deciding tho rotation of rctiement will be considered. The position of the company was reviewed by Mr. J. Montgomery, who presided in the absence of the chairman and vice-chairman of directors. “In spite of the extraordinary drop in the value of meat and other allied products on the London market, the directors do not anticipate a serious loss on the year’s operations,” said Mr. Montgomery. “It will not take a very considerable rise in the value of stocks in hand to wipe out tho estimated loss. While results are not as satisfactory as might be wished, they are only a reflection of the state of the trade as a whole. Looking at the matter from the most critical view, shareholders could say that, while it was true that most of the reserve funds had been returned to them in dividends, their original capital was still intact.”

Mr. Montgomery said the company’s works cost and were insured for just under £1,000,000, while at the present market value of shares tho public valued them at about £300,000. He compared the profits over the period of the present administration, nine years, with the average profits of 13 Now Zealand-owned companies during the same period operating in the same districts. Of these 13 companies which were in existence nine years ago only seven were still in operation on their own account ho said, the other six having either gone out of business or leased their works to others. ►Speakers contrasted the results of the company with those of two other companies, and tho view was expressed that if the next five years were like the last the company would be forced to call up its uncalled capital. Mr. Newburgh said the present administration started its period of control under a severe handicap, as compared with tho other two companies, having a deficit of liquid assets as compared with a big surplus enjoyed by the other companies. “The industry is passing through a critical period,” said Mr. J. G. Armstrong. “There are to omany works and the available supplies of livestock are, for the time being, on the decrease. The situation demands a definite change of policy through the election of fresh directors.” After further discussion it was decided to set up the committee.