"Extraordinary Meeting T= capital of the Shangh bbe increased from Tls. 7,020, Land Investment Ca., Ltd, will"
(000 to Tls. 7,020,000 ana $6,879, 600 by virtue of six special resolutions passed by shareholders of the company at an extraordin ary meeting held on June 30 at. 100 Jinkee Road. A large number of, shareholders were present fat the meeting to vote on the resolutions, which were all passed unanimously.' The chair was taken by Mr. L. J, Davies, who proposed the resolutions, supported by Mr.
Massey, who seconded them.
hia speech following the read-advisability and necessity for the ing out of the resolutions, the chatrcompany acquiring new capital, they man said: do not intend to vole on the resolu "The purpose for which this meettions in order that the remaining, ing hag been called 1s to submit to shareholders may indica you the resolutions which you have would mention Just heard read.
'Kesolution one, provides for the in-grease of the.company's capital by tthe creation of 982,000 shares of $7 Owing' fo il healt Mr, "Chuk each and in this connection, 1 wish ing-him found it necessary to. to state that your board have given sign, and bls resignation was received. the matter most careful consideration with "extreme. regret' by his fellow and. unanimously recommend that Girectors. This created a third same should be accepted by sharevacaney'on the board and" holders. "|N.L. Sparke's resignation of hig ap= New Capital Needed ointment of manager, the board un= For some years past, your directors Enimously decided. to! invite him to have been firmly convinced of the it "one of the. vacancies "This will necessity "of raising new capital for ensure. that Mr. Sparke's wide ex-the Company. There are many reaperience and knowledge of land matsons why a new capital issue is im-{ere wit "ati be avail to the trative, the most important being com 'Gon wil meet with general approval and Tam sure this invita. the' liquidation "bt the bank over-aft. 'I would point out that in SirRobert Ho Tung was also invited écition to this overdraft,. there are to join the board and on Mr. F. various issues of debentures totalling Davey's return to Shanghai we hope approximately $17,500,000, one issue ho' wil il the remaining vacancy. of which is due for redemption in Both these gentlemen are either in: dividually large shareholders or re-'The effect of this load of debt is resent large interests, apparent on reference to the accounts for the year 1996 and it will be realized ihat there can be little prospect of distributing a dividend to shareholders for many rs to come, tunless some radical change in oUF financial position is effected.
During 1036 the cost in interest to. the company on account of the bank "Phot the said overdraft alone amounted to nearly teat nate pegiona {$700,000. and it is obvious that if this ghetaeeiasle he ced Overdraft is liquidated, this in itself will bring the company nearer to a dividend paying basis.
Every Economy Exercised the.
During the lean years. every econo-share shall cout my consistent with efficiency was ara at Ge alte Sal excised. Amongst econom! was the reduction of renewal and maintenance expenses to the absolute minimum. With the improvement in the demand for' accommodation and with some of our properties beginning to show signs of age, it is essential that we embark on some capital expenditure to make our older proper-les more attractive to prospective tenants, Tesolution two offers the new shares to the existing holders on the Dasls that shareholders on the regis. ter at to-day's date will be allowed to apply for seven new shares of payment pt'the fwiotmount $7 each for every ten shares of Tis, Fe'tholl" accompany the 5 each which they now hold. These new shares are'to be offered at a premium of $2 per share, Local shareholders will be allowed to July 15 to accept this offer, while shareholders not resident in Shanghai will be allowed to Sept. ember 15 next. The full amount of $9 per share is payable on acceptance.
You will observe that - resolution [Par three pernt@s shareholders who have the rectors be_ empowered 12 taken up their shares under the pre ire efersed Ye In Jeeding resolution to apply for th shares not taken up by other shar holders in response to the offer made to them. Applications for these shares are to be accompanied by the full amount of $9 for each share ap-Bled for, and azo o be in our hands Rot later than September 90.
The fourth resolution, if passed, will place the new shares on the ets a coa fame footing as the existing Tls. 5 shares and from date of allotment the new shares will be entitled to the same dividends og the old, Resolution five enables the directors to dispose of any shares thet are not allotted to shareholders. Th is purely a contingent resolution and
Text read from the printed page and cleaned; old type leaves the occasional error.