of the Board of Dixectors, pre-#ided at an extraordinary general meeting of shareholders of Shang hai Horse Bazzar & Motor Ca, Aad. on December 6, Eight shareholders were present representing a total of 5085 shares ut of a total of 5400.00. It was wrepored by Mr. A. W. Burkill and seconded by Mx. Li, M. Mind that the company's motor car depart: ment and goodwill be sold to Mr.
Marsh on behalf of a new company to be formed and knows: as the Atito Palace Ca. Ltdy on the terms submitted to the shareholders, This was carried unanimously In addressing the meeting, Mr Burkill said:
It has been apparent for time that the property) in the Bobbting Well Rosd and Burkill Rend, where we conduct our busines, has become too valuable for present purpose, and partis wit this in view, your directors, during Who yarly-part of this year, purchased the business and property Bazaar & Motor Ca, Ltd, and as time their idea was to transfer the motor business to another site, where not only would land be cheap-ey, but also, by erecting an up-to date building,-many economies could be effected in the ranning of our Wasiness. This would" naturally have entailed a good deal of capital expenditure, there would have always been the risk of trading conditions in Shanghai, and conse: ayontly the return that could be paid to shareholders on, the capital invested.
Last October, the suggestion was made that we might sell our motor cay business and the Hudford Garage to Mr. J. W. P. Marsh, acting on behalf of a new company] to be formed, and known as the Auto Palace Ca, Ltd. After very] careful consideration, your direetors have come to the conclusion that i would be more to the inter feats of the shareholders to dispose of this part of your business than to take the risk of continuing same After considerable negotiation, 3 preliminary agreement was. signed on November 21 with Mr. J. W. Marsh, subject to the consent. the shareholders, to sell all the assets and the goodwill of the motor Uusiness of the Shanghai Horse Bazaar & Motor Ca. Ltd., together with the right to use its Englisa name and its Full Chinese Hong name.
The terms briefly are:—
That on January next, the new company. The Auto Palace Com pany, Ltd., will take over from the Horse Bazaar all new cars in stock and paid for, at cost with interest to the date of taking over and wil also assume liability for all bills drawn for new ears, ete. in_ stock but not paid for, the' Horse Bazaar to transfer all exchange contracts settled against there bills.
A valuation has been agreed upon with Mr, Marsh on all spares and accessories, stationery, ma chinery and plant, furniture and fittings, electric fittings and tool? and second hand cars both here and at the Hudford Motor, but is sub: ject, of course to an adjustment for any' sales and purchases that may have been made since stock and valuation was made to date of taking over.
The land and buildings at the Hudford Motors have been sold to the new company for Tls. 66,000.00.
In addition to the payments for tangible assets, the Horse Bazaar will receive Tls. 60,000 for good will, bat in connection this, the Horse Bazaar retains the right to continue its live stock business under the English name of Loongfei Live Stock Ca., or som similar mame, if they wish to do so.
All promissory notes held by the! Morse Bazaar are to be taken over' and paid for in cash, but subject to) full guarantee from the Horse Bazaar, The new company will take over all commitnients of the Horse Baza the way of outstanding} orders not yet executed, and will also have the benefit of all outstanding contracts.
As regards contracts with em: ployees, the new company will take over stich as they wish to employ and who are willing to serve the new company. Any compensation, that may be payable, Will be for ae count of the Horse Bazaar.
The new company can occupy our present premises at Bubbling Wel! Road and Burkill Road, at a rental of Tls. 1,600 a month, payable:
thy in advance, but this la subject to four months? notice on either side, This occupation by the new company of these premises does not interfere in any way with the present business of the Bazaar in live stock.
These are briefly the condition of the sale of our motor business the total to be received will te ap proximately Tls. 40486197. As T already explained, this figure is subject to adjustment in view of the fact that since the valuation was made of certain stocks, we" hav carried on the business: the fixed payments are is, 68,000 for Hud-ford Motors and Tls. 0,000 for Your directors are of opinion th tis to the best interests of the! shareholders to sell the motor business of this company. and if you agree to this resolution, they -wil! call, in the next few days, ordinary general meetings fo liquidation of the Shanghai House:
Text read from the printed page and cleaned; old type leaves the occasional error.