WAIHI INVESTMENTS

Waikato Times, Volume 123, Issue 20692, 30 December 1938, Page 6

WAIHI INVESTMENTS

USE OF RESERVE FUNDS DISCUSSION IN LONDON An alternative policy of investing the funds of Waited investments and Exploration, Limited, instead of pursuing a course of looking for suitable mining proposition's, was discussed at length during the company's annual meeting in London. The chairman, Mr G. R. Mitchison, said the directors appreciated that shareholders might not wish them to hold indefinitely so large a reserve of gilt-edged securities and they had in mind the possibility that, unless a suitable mining venture was offered them within a reasonable time, they might have to direct their attention to investment rather than exploration. The directors also had in mind the more limited possibility that some at any rate of the funds of the company might be directed to this purpose. Several shareholders voiced their disappointment with the low price at which the company's shares were being quoted on the Stock Exchange, and also with the low rate of dividend which they were receiving. They suggested that either the board should invest the company’s funds In securities showing a higher yield than the present holding |of gilt-edged securities, or that the I assets of the company should be distributed to the shareholders and the company wound up. Received Shares for Nothing Mr Mitchison said he had great sympathy with shareholders who found that the price at which their shares were standing was insufficient. Perhaps that sympathy was a little qualified when, as appeared to be the case in some instances at any rate, they had received their shares for nothing out of their investments in the old Waihi company. The board had endeavoured to follow the primary purpose for which the company was formed —that of embarking the resources of the Id Waihi company in exploration of mining properties and in investments in those properties —under the very sound and experienced views of those qualified persons who examined the properties brought before the board. The resolution adopting the directors report was carried unanimously.