At the conclusion of the annual general meeting, an extraordinary general meeting was held, Mr. Hearn presiding.
The Chairman said—Gentlemen, the resolution I shall be proposing will I hope meet your. ready assent. I have already, at the meeting just concluded ined why it is we desire to provide more funds and why we propose it by the issue of new shares, rather than by a resort in the first instance to debentures; and we hope you will have recognised the prudence of this course.
In the resolution which you have in your hands you will notice that it proposed that the issue of the shares be on such terms and conditions as the Directors shall determine. It is intended that one of these conditions shall be their issue at 40 per cent premium, say at Tls. 70, a price which we have thought the circumstances of the company well warrant. We have every confidence that the shares will be taken up at that, but the resolution does not state the price, for the reason that we wish to avoid a hard and fast rate being imposed in the issue. The shares as you know are in the first instance to be offered to the present shareholders; and we expect to find them so satisfied with the prospects of the company that they will leave few to be taken up outside of their body. You di will also have noticed that a shareholder is to be held entitled to three new shares for every ten he now holds, or say in the ratio of one to 34. Thus, a holder of say 176 shares would be entitled to52 new shares and eight-tenths, - Tt has been found inconvenient, however, in other companies to have fractional shares; and indeed our articles would not permit of them. We propose therefore to. exclude these from the allotment and to ispose of the aggregate of them by tender or otherwise. Any profit arising between the issue price and the sale price will be distributed pro rad among the shareholders interested in them. The premivin on the new issue we would place to Reserve, to be en: ployed, however, in the business of the company. I therefore beg to propose the following resolution the Memorandum and Articles of Assoeistign (a.)—That_ under the powers conferred
the capital of the Company be increased by the issue of six thousand new shares of Tls. 50 ach paid up in fil in addition to the twenty thousand like shares already existing.
(2b,)—Such new shares shall rank for dend as and from the Ist day of July, 1897.
(c.)—Sach new shares shall' be offered to the shareholders on the register on the 22nd day of February, 1897, on such terms and conditions as the Board of Directors shall determine in the proportion of three New Shares for every ten existing Shares held by them and such offer shall be made by two of the purchase they sold the propert notice to be issued not later than the 3ist day of March, 1897, specifying the number of 25,000) will appear in the 1897 accounts, the the New Shares to which the Sharebolder is title deeds having only just been received entitled and the rate of issue of such Shares, from the Chinese Authorities. and stating that the offer will be deemed to 'Capital.—The final call on the Capital of be declined unless an aeceptance'of such offer the Company, notified on the 20th August, in waiting is delivered (o the Agents of the 1896, is being met, but some of the payments, Company' or to the Company's Bankers, the for Various reasons, have been coming in only Hongkong and Shanghai Banking tion, after the closing of the accounts. 'The Dires-Shanghai, on or before the 30th day of tore propose to lay before the. Shareholders June, 1897,' together with such sum per scheme for increasing the Capital of the Com-Share for each New Share so accepted as the Bat accessary owing to the increasing opera: 1¥, a step they consider not only judicious, j Board shall determine. in Gre time abovementioned Uh Shares 'd. }—Upon acceptance ai ent with-ions of the Company.
Directors.—Mr. Hogg retires by rotation accepted and paid for shall be allotted but offers himeelf for re-election. accordingly.
Auditor:—Mr. King having gone home in (e.)—Alter the 31st day of July, 1897, an
Text read from the printed page and cleaned; old type leaves the occasional error.