ANNUAL MEETING

Daily Telegraph (Napier), Volume 58, Issue 142, 18 July 1929, Page 7

ANNUAL MEETING

NEW ZEALAND BREWER1ES, LTD. 15 PER CENT. DIVIDEND FOR THE YEAR. Mr A. S. Bankart presided over tho sixth annual meeting of New Zealand Breweries, Ltd., licltl iu Wellington yesterday. A motioii tbat a cliviclend of 7i- jicr cent. he paid (making 15 per cent. i'or tlie year) was carried unanimously. Tliis represents an_ incicaso of 5 per ceut. over tlie previous year. The proposals of tlie directions regarcling a rearrangement of the capital of the company were also adopted. Tbe retiring directors, Messrs E. R. Davis, A. ti. Duncan ancl P. F. McEvedy, were re-elec-ted, wliile Messrs Watkins, Hull, 'Hunt ancl AVbeeler were appointed tlie auclitors. Tlio annual report and balanc© sbeet as adopted showed tliat al'ter makiug tlie usual allowances for depreciation and providing for all cliarges i'or adminstration, tlie company hacl made a gross profit of £607,536 7s from wliicli the Govcrnment toolc by way of beer duty £478,687 19s lOd, leaving a net profit to the company of '£128.848 7s 2d, or some £7000 more tlian last year. To tlio amount of not profit for tlie year lias to bo added tbe amount carried fonvard from tlie previous year, £15,170 18s 8d, making an amount of £144,019 5s lOd available for appropriation. The directors reconimend placing £50,000 to the reserve fund, whieli will tlien stand at £300,000 and to distribute a. further £37,500 among sharcholclci's by way of diviclend ancl to cari'y fonvard the sum of £19,019 5s lOd to the new account. Outlining the proposals of the directors with regard to the re-arrangement of tlie capital of the company; Mr A. St. Bankart said the aecounts stood at : Capital. £500,000 ; reserve fund, £250,000; debentures £1,000,000. The directors, proposals involved an increase oi the capital of the company, ancl in order to provide for future evcntuauties the directors recoinmend an increase of £2,000,000. _ If that were agreed to then tlie directors recoinmend that a boivus distribution of 1 share in 2 he made to sliareholders, which would be taken from tlie reserve fund on Mavch 31, 1930, and allotted to shareliolclers in ]iroportion to their liolding. Any interim dividend wlnch might he declared for the half-year ending September 30, 1929, would he pavable only 011 £500,000. Dcaling witli debcnture stock outstanding, Mr Bankart saicl that the inortgago of £1,000,000 was one tbat tbe directors would prefer to see retnoved from time to tiine, and at prices only a little above par. The directors hacl purcbasecl £250.000 of the debentures, which were now lield by the company itself, and, of course, could not be reissue'cl, and would require to be cancelled. The terms of the issue of tbese debentures providecl for their repayment at the option of tbe company, eitker in 1933 or in 1943. It would be obvious, be continued, tbat it was not in the best interests of tbe company tliat it sliould be hamperecl witli so large a debt, for the repayment of which provision must be made, ancl tliat it would be advisable to convert it into sliare capital. Tliey did not desire to part with their debeiitui eholclers," hut the proposal which the directors make gives theni tlie opportunity of contiiuiing their association with the company and sharing in its future, whatever was in store for it. 'Tho proposal was that they be given the option, until January 10 next. of intimating their willingness t,o convert their debentures for shares, by surrendering two debentures in exchange for oue share, to take eftcct as from April 1, 1930. Those who accepted the proposal would therefoj-e receive the interest 011 their debentures to March 31, 1830, and thereafter would participato as shareliolclers. Tliose avIio dicl not avail tbemselves of tbe option would rctain their debentures,. taking the risk of repayinent by the company in 1933. Tbe adoption of tlie proposals, moved by tbe ehairman, was secendecl by Mr A. S. Duncan and carried unanimously.