BANKING VENTURE.

Waikato Times, Volume 116, Issue 19353, 5 September 1934, Page 7

BANKING VENTURE.

AFFAIRS OF CORPORATION.

INTEREST IN NEW ZEALAND. MORE CAPITAL CALLED UP. Owing to demands received by shareholders for amounts due on calls made by the company, the affairs of the Australian and New Zealand Banking Corporation, Limited, of Sydney, are again causing interest in this Dominion. One instance is reported in which a shareholder, who had not paid the amount due by the stipulated date, was asked what proportion of the amount due could be paid. The Corporation was registered in New South Wales in December 1928, but the majority of the shareholders are resident in New Zealand. The authorised capital was £5,000,000 in £1 shares, tlie amount issued being £4,000,000, of which 2,000,000 shares were offered for public subscription in Australia and New Zealand, and 2,000,000 abroad. The company went to allotment, but did not commence business. Of the capital issued £171,140 was subscribed, of which the amount paid up was £50,561. It is estimated that about 152,000 shares are held in New Zealand and about 16,000 in Australia. Figures are not available, but it is estimated that of about £20,000 due on the last call of 2s 6d a share only about £7OOO lias been paid. Sydney Building Principal Asset. A building in Pitt Street, Sydney, was purchased, and this remains the principal asset. The balance-sheet as at September 30, 1933, shows freehold land and building and furniture valued at £154,227. Other items on tlie assets' side comprise mortgage accounts, £6411; cash, £sl; preliminary expenses, £33,728; and profit and loss account, £7723. Mortgage accounts are set down at £137,548 and creditors, £2312. A circular issued by the company in February last fully set out the position of the concern. This stated that the building was‘shown as an asset in the balance-sheet of approximately £50,000 in excess of a present forced realisable value, which the mortgagees considered to he £IOO,OOO. Should tlie company be wound up, shareholders would be compelled lo pay from calls an amount of about £4 0,000 (about 5s a share) to the mortgagees. So long as the company did not go into liquidation, tlre mortgagees could not claim against the shareholders. Tlie circular pointed out that Hie position of (lie building, since last year, had improved as a renting proposilion and Hie revenue had increased. The directors stated that they now considered that the position of the company could be retrieved. They suggested steps to form a subsidiary company for private banking and investment business and to place ihc building on a profit-earning basis.