The extraordinary general meeting was held immediately after the confusion of the above meeting. Mr. Canning said:
You have been circularized with regard to @ scheme of arrangement between the company and its shareholders and I trust you will give it your full support. The main reason we have to put before you this Scheme to-day" is that we met with opposition in the ideas we had in transferring our plant in August 1931 and instead of buying land at Yangtszepoo and selling the Thibet Road alle at the same time, we did the: former and in deference to pressure withhold. the second. Land. values, as you all know, have very consider ably decreased since 1981, in certain Gisiriets as much as fifty per cent., fand to-day, owing '0 financial stringency, a plot of land of about 30 mow for the time being unsaleable.
In our circular of August 28, 1931, L regret that the investing public may have been misled by a statement of the board that (unless some unforeseen circumstance made it impossible) we would be enabled to recommend substantial distribution of bonus shares. This unfortunately cannot take pace owing to the fact that we missed the market for the sale of the Thibet Road property which is now vacated and saleable. It ts no tse crying over spilt milk, you have mont up to date plant at Yanglszepoo and f venture to think that that plant is going to repay shareholders for many years to com The Scheme Explained As you are aware, our authorized capital is Ts. 2,800,000 and having in Taind that the tael is no longer the medium of a financial transaction owing to the order issued by the Minlatry of Finance of the Republic of China on April 5, 1993, we have decided to place the funds of the company into current coinage and to do this, owing to the Companies [Ordinances, we process of law. cularized with the scheme which briefly is that we apply for & nominal capital of $7,000,000, propose issuing up to $5,600,000 by first of all_ con Verling our paid up capital of Tls. 2,000,000 dollars "($2,707,202.80) paying a dividend of $0.06003 per Share from our Prest & Loss Account and applying same to bring the equivalent to $200,000. The shares are then divided to bring the nominal Value to $10, as a $10 share is too odd an amount for the market, and future when raising capital a unit of $10 is far easier to work, and we then issue new shares in the proportion of one for one. If this issue is taken up the capital of the company will be $5,600,000, leaving us $1,400,- 000 to be issued later. Market con ditions are not good for issuing shares but T trust this flotation will be That is all I can usefully tell you with regard to the unissued and increase nominal capital of the company but if any shareholder has any. Question to ask I will try and answer the same to the best of my ability. Tomight add that if the resolutions lure passed we have to again go to the court and a petition is then presented to approve the scheme, which sanctioned by the court becomes binding on all members.
In the scheme of arrangement! paragraph 2(b) the word "nominal" value appears. 1 would like 10 use the term "paid up" value. It does of in any way affect the Resolution: which is asking you to adopt the scheme as a whole. It is merely slying expression to a more correct term.
Resolution Passed There being no question, the following resolution was passed:
Text read from the printed page and cleaned; old type leaves the occasional error.