Page 2 Advertisements Column 2

Gisborne Times, Volume XXVI, Issue 2273, 19 August 1908, Page 2

PROSPECTUS UK THU E \ COMPANY INTENi)KI> TO BE INCORPORATED UNDER “THE COMPANIES ACT, 1903.” .PROPOSED DIRECTORS: A. I’. HAILEY, Baker, Gisborno. lIK I! BERT W. WILLIAMS, Clerk in Holy Orders, Gisborne. II E, 111 Mi, Land Agent, Gisborne. ,1. HAROLD KANE, Chemist, Gisborno. (!. PALAIRET, Settler, Gisborne, li. REDWARD, Clerk, Gisborne. J. A. ATCKIN, Accountant, Gisborno. BANKERS: THE BANK OK AUSTRALASIA, at Gisborne. SOLICITORS: REES BROTHERS & BRIGHT, oi Gisborne. AUDITOR: ANDREW GRAHAM, of Gisborne, Aeeonnlant. SECRETARY AND BROKER: OIIRISTOPIIER GISBORNE RIESSE, of Gisborne, Accountant.

OBJECTS. The objects and powers of the Company are set out in tho Memorandum of Association, a copy of which is printed at the end hereof and forms part of tho Prospectus. Tho Company adopts Table A ol the ‘•'Companies Act, 1903,” except as added to and modified by the General Articles of Association, a copy of which is also printed at. the end hereof and forms part of this prospectus. CAPITAL. The capital of the Company is £SOOO, divided into 5000 Shares of £1 each. . • Of the above-mentioned shares 250 are to be issued and credited as paid up in full in part consideration of tho sale to tho Company, particulars of which are hereinafter more particular!-- set out, 2000 shares are reserved for subsequent issue for extension ,>i business, and the remainder, 2750 shares, are offered to the public for subscription- payable as follows: Two shillings per share on application. Three shillings per share on allot-' ment ” And the remaining fiftoen^ndfilli ll "s per share shall bo payable in calls of not more than live shillings per share at intervals of not less than one month. / PURPOSES. Tho Company is being formed for .lie primary/purpose of acquiring the Bakery Business now carried on by the vendor, Arthur Percy Hailey, in Gladstone Hoad, Gisborne, and of carrying on, consolidating, and extending the trade or business, and of carrying out tho objects mentioned in the Memorandum ol Association. Tho Trustee for and on behalf of the Company has contracted with the said Arthur Percy Hailey (hereinafter sometimes called “The Vendor”) to purchase the business as a going concern. but not including book or other debts. Tho prices fixed for such purchase are as follows: (a) Tho sum of £350 for tho goodwill of the said business and lease of the premises. (b) Tho value determinable by valuation in the ordinary wav of the buildings, stock-in-trade, plant, fittings, machinery, furniture, goods, chattels, and effects of the said business in, upon, or about the promises or used by the Vendor in the said trade or business. • The Vendor will accept payment of the purchase money aforesaid as follows :

stituted l»y the bakers of Gisborne, anil this method will bo adhered to by the Directors so long as the local bakers take a Ji'ke stand. Mr. Hailey lias undertaken, should the Company refillin' his services, to act ns manager for the Company for 12 months, and has also entered into a covenant with the Company not to enter into competition with the Company either on his own bolialf or as servant or agent or otherwise within a radius of 50 miles from Gisborne. With a capable manager, an up-to-date plant, and no fear of bad debts, the Directors are confident that the business can bo made a highly successful one. It will ho their aim to extend the benefits of co-operation to all branches of the community, and if tho public assist by subscribing for shares and supporting the Company, the Directors feel confident that they can by way of dividends and bonuses materially lessen to shareholders the cost of the “staff of lifo.” To comply with tho Provisions of , “The Companies Act, 1903,” tho fol-j-lowing matters are set out : (a) A copy of tho Memorandum of Association with the names, addresses, and descriptions of the signatories and the number of shares subscribed for by them respectively is printed at the end hereof, and forms part of the prospectus. (b) The number of shares fixed by the Articles of Association as the qualification of a Director is ten. Tho Directors may appoint a Managing Director, and fix liis remuneration (c) The names, addresses, and descriptions of the proposed Directors are sot out at tho beginning of this Prospectus. . (d) The minimum subscription on which the Directors may proceed to allotment is fixed at 1000 shares. The amount- payable on application and allotment are hereinbefore set out. (c) It has been agreed to issue 50 fully-paid up shares and 750 debentures, which are tho shares and debentures hereinbefore referred to and agreed to be taken by tho Vendor in. part consideration of tho purchase moneys. (f) The Company proposes to purchases the lease and business as a going concern of Arthur Percy Hailey, and to pay for the same partly out of the proceeds of the issue offered for subscription by this Prospectus. The amounts payable in cash, shares and debentures to the Vendor are hereinbefore set out. (g) Tho amount payable as purchase money in cash, shares, and debentures for such property as aforesaid, including “goodwill, has been hereinbefore set out. (li) The Company has agreed to pay a commission at the rate of £t> per cent to the broker on all shares subscribed for. (i) The preliminary expenses of and incidental to the formation and establishment of tho Company and until the Company shall be

(a) £250 or 250 fully paid-up shares in the capita] of the Company. (b) £750 by debentures repayable in three years, and carrying interest at the rate of £5 per cent per annum. (e) The balance may at the option of the Company be paid in cash, or the Company may take over the liabilities of the Vendor, and the balance after allowing for liabilities as aforesaid, shall be paid to the Vendor in cash. BUSINESS.

It will no doubt interest intending Shareholders to ascertain ns nearly as possible the present position of the business proposed to bo acquired. Four and a. half years ago Mr. Hailey, with little ortno capital of his own, commenced business in this town. He commenced in a small way, and for the first year had no .shop in connection with his bakehouse. Three and a half years ago lie acquired from Mrs. Byrne, a lease of a quarter-acre section in Gladstone Road at a rental of £-52 per annum. He has sublet for the remainder of the term a portion of the section with buildings on such portion at a rental of £SB 10s per annum. It will therefore bo seen that the lease of the balance lias a very real value, and the price fixed tor the goodwill cannot be considered excessive. Since entering into possession, Mr. Hailey has erected on a portion of the land retained by him a substantial brick building of the approximate value of £SOO. He has installed up-to-date bread and eake-ma'king machinery, and generally has acquired a thoroughly efficient plant. The Directors would call special attention to the machinery which lias been installed by Mr. Hailey. This is of tho latest pattern, and gives the business proposed to be acquired advantages not enjoyed by any other businesses in Gisborne. A balance recently taken out by a competent accountant shows that after drawing a good income tho Vendor’s assets exceed his liabilities by approximately £I7OO. This balancesheet the Directors believe to be correct, and .will submit same to shareholders with fullest confidence, but owin'* to the fact that Mr. Hailey lias not kept his books on approved lines they can give no guarantee to the shareholders as to tho accuracy of tlio statement. When it is remembered that tho greater part of the time tho Vendor was running his business on a credit basis, and that £OOO or thereabouts has been allowed or written off for bad and doubtful debts, tho position must bo considered a highly satisfactory one. Mr. Hailey’s cash takings average from £2OO to £3OO a month, so that some idea can be formed of the excellent connection which he has worked up. The lease of tho Vendor’s premises runs out in September, 1911, but this fact should cause no concern, as the Vendor has by a subsidiary agreement obtained from the Lessor an undertaking to pay the value less tho sum of £lO of the brick building erected by the Vendor, and also has obtained by such agreement a first refusal should flic Lessor be desirous of relotting the premises, and the. Vendor undertakes that these benefits filial! he extended fo the Company. PROSPECTS. The time seems opportune for the formation of this Company. The coupon and cash system has been in-

entitled to commence business are estimated to amount to £75, and will bo borne by the Company. (j) The Vendor will pay Mr C. G. Pi esse for his services in the promotion of the Company the sum of 50 guineas. (k) The contract for sale to the Company of the property of the said Arthur Percy Hailey and the stock-in-trade, plant, machinery and other assets (excepting book debts) before enumerated is dated the 13th day of August, 1908, and is made between tho said Arthur Percy Hailey of the one part and Harold Ernest' Bright as Trusteo for ami on behalf of tho Company of the other part. Such contract and copies of the Memorandum and Articles of Association of the Company and of the Lease, Sub-Lease, and Agreement referred to in this Prospectus oan bo inspected at the offices of tho Company's Solicitors, Messrs Itees Brothers and Bright, Lowe Street, Gisborne, during business hours (l) The names and addresses of the • auditors are set out at tho commencement of this Prospectus. (m) Mr. Arthur Percy Hailey, Director, is interested in the promotion of and in the property proposed to ho acquired to the extent only of his interest as Vendor under the contract,particulars of which are hereinbefore given, and none of the other Directors have any interest therein. (n) This Prospectus is dated the 13th day of August, 1908, and is signed by the persons named therein as Provisional Directors. It has been filed with the Registrar of Joint- Stock Companies. Application for shares should be made upon the form accompanying this Prospectus, and sent to the Secretary of the Company, together with the amount payable on application. If no allotment is made, the deposit will lie returned in full, and if tho number of shares allotted on any application is less than tho number applied for the balance of tho anplicatjon money will be applied in reduction of the allottee’s future liability on the shares allotted. Dated the 13th day of August,l9oß. SIGNATURES OF PROPOSED directors: A. P. Hailey. Baker, Gisborne. Herbert W. Williams, Clerk of Holy Orders, Gisborne. H. E. Hill, Land Agent, Gisborne. J. Harold Kane, Chemist, Gisborne. G. Palairot, Settler, Gisborne. L. Redward, Clerk, Gisborne. Jas. C. Aic'kin, Accountant, Gisborne. Witness to all above signatures— J. Todrig Witty, Clerk, Gisborne.

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