Consolidated Brick Investment Shareholders In Wanganui Dissatisfied

Wanganui Chronicle, 21 August 1950, Page 4

Consolidated Brick Investment Shareholders In Wanganui Dissatisfied

Wanganui shareholders in the Consolidated Brick Investment have signed proxies to ensure their representation by Messi's Geo. A. Mcrilwa.n ano S. J. Sullivan Junior at the annual meeting of the company, to be held in Wellington on Thursday next. As far as can be discovered in the short time available prior to the meeting every Wanganui shareholder has joined in this movement. A solicitor said that the accounts ol the company reveal very little, but this little does not hide the fact that in his opinion, a dividend could be paid out of this year's earnings. An accountant pointed out to as the company is an investment company, it does not need to accumulate reserves. “The companies in which the company holds shares reiam profits and presumably sufficient of them in order to provide tor expansion,” he said. The retaining of profits by the holding company, therefore, amounts to an insurance of the future dividends of the preference shareholders at the expense of the ordinary shareholders.” The report and balance-sheet of this company were received in Wanganui during last week, but as proxies had to be lodged at the company’s registered office in Auckland 48 hours before the holding of the annual meeting at Wellington, it meant that prokies had to be completed and posted by Friday in order to have them delivered on tin l6 in Auckland by registered mall. “This places shareholders at a severe disadvantage when unified action is required," said the accountant. Of late there has been considerable buying of these shares In the Taranaki district, but as yet there Is no Indication as to how shareholders in that district are viewing the matter. It is understood there is some discontent In I Wellington.