A FEW SUGGESTIONS FOR YOUR GAMES KIT:
Tennis and Sport Skirts
While Woollen or Cotton Socks. Pullover and Coal Style Sweaters
in white and in colours. Woollen Tennis Wraps and Scarfs. Flannel Trousers-white and grey. Sports Jackets: Golfing Wear:
Tennis Shoes Golf Shoer..
V
Games and Sports Wear
THE
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The Sports wear we show you comes from London
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AND
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:
PRICES OF ADMISSION: FULL BOX 6 PERSONS... SINGLE SEAT
1st CHAIRS
2nd
STALLS
GALLERY
14
$20.00
4.00
3.00
2,00
1.00
.50
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Children Hall Price to Afternoon Performances Only.
SEE DARE DEVIL MOSCOVITCH
IN HIS JUMP TOR LIFE LEAPING THE AIR A DISTANCE OF 45 FEET
ON A HARLEY DAVIDSON MOTOR CYCLE
BOOKING AND PLAN AT MOUTRIE'S.
THANK
I AM.
GOODNESS
INSURED
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Insure against Accidents
with
(2057
THE GENERAL ACCIDENT FIRE AND LIFE ASSURANCE CORP., LTD
For information apply
AGENTA?
J. H. BACKHOUSE, LTD,
TEL, No. 1738.
1A, OHATER BOAD,
THE HONG KONG DAILY PRESS, SATURDAY, NOVEMBER 30, 1929.
ATTEMPT TO "NAIL" DIRECTORS.
AFFAIRS OF HONG KONG DEVELOPMENT, BUILDING &
SAVINGS SOCIETY. ·
CONTRIBUTORIES AIR INDIGNANT VIEWS.
MR. SETH PILOTS AN AWKWARD MEETING.
Mr, J. Hennessey Seth, representing the Liquidators" (Messrs. Percy Smith, Seth & Fleming, Ltd.) presided at the adjourned meeting of the Hong Kong Development, Building and. Savings Society, Ltd. (in liquidation) held in the Oity Hall yesterday afternoon. The meeting had heen adjourned on at least two previous occasions owing to the fact that nobody present would second the adoption of the Annual Report and Statement of Accounts presented by the liquidators.
At the last meeting several protests were made by contributories, who were among the smaller shareholders of the Company, against the recent call-up of $1 per share to meet the de- mands of creditors, and the Chairman was asked why many persons who held major blocks of shares had been able to evade their obligations.
At yesterday's meeting, Mr. Leo d'Almada, senr., on behalf of five of the contributories, presented a series of questions for the Chairman to answer, and one speaker suggested that legal" action against the inte Directors and promoters of the Company be taken.
MR. LEO D'ALMADA'S 31 "POINTS."
Opening the proceedings, M. Seth observed that the meeting was convened for October 95 but was adjourned in order that a number of points could be discussed. Hesion dealing with this matter. then proposed the adoption of the Liquidators' Report and Statement
The Cirman added, in reply to Mr. d.'Almada, that, so far as hu knew at the moment, there was nothing in the records in his posses-
of Accounts."
Mr. Leo d'Almada, snr., then rose to the attack and said he represent- ed five contributories who had sign: ed certain questions sent to the liquidators by the speaker on their behalf. He understood that the Chairman had given them."very formidable consideration" and had framed a series of answers to these questions which would be read cut during the course of the meeting.
"I will ask you, Sir," said Mr. Almada, to allow me to put the questions ane at a time and I will Accept your answers on behalf of my clients subject, of course, to any reservations they may have."
Certainly. The Chairman:
Applicants for Sites. The questions and answers, with inter alia discussions, appear be low:-
Mr. Chung: Arising out of ques- tiens 1 to 4. you have absolutely no recard of any grant having been made 7
Chairman: No.
But, on the contrary, everything gors to point to the fact that no grant was made at all 1-1 would not go so far as to say that, because the minutes of the meeting to which we have referred contain a reference made by the Chairman of the Com pany to "favourable terms."
But you have no record of any premiums having been paid 1-No.
So that would point to no grant having been made at all, wouldn't it - take it so.
The questions were the resumed.
The Finance Committee. 5. What was the amount pay; able to the Government for premium under the 40 years' lease in the event of the Directors obtaining such a grant for the said land?
"If this question refers to Jardine's Lookout, I regret I am unable to reply to it, but if it refers to Inland Lot 2454, etc., nt Wongneichong, the premium paid to the Government was 88,300,"
Question: 1.-"From the records of the Company now it your posses sion, please state the actual number of applications received by the Directors from persons desiring to
6. Can you give the names of obtain the assistance of the Com- pany in building houses as mention the persons (Directors) who, werg ed in the prospertus of the Com-appointed to manage or control what the Chairman stated at the arst ordinary general meeting on January 17, 1995, to be a finance department of the Society?"
pany
17
Answer: "From the records in our possession 1,633 persons ap- pear to have applied for sites."
Question: 2On what date were the negotiations for the nequisition from the Government of the plateau below Jardine's Lookout completed as stated in the said prospectus !
Auswer: 2- I regret I am uns able to give the date when the negotiations were completed, but this was probably before December 17. 1923, As there is a reference in the Minute Book to the proposed engagement, of architects on this date."
Government Grants.
On what date was the grant
of the said land made to the com- pany s mentioned in the Chair- man's speech to the shareholders at the statutory meeting of the com phay on March 20, 1921
I am unable to give yon the date when the grant of Jardine's Lookout was made to the Company, as there is no record in the Minute
Book of the date."
The Chairman added that he had made a personal search but without result and was still looking through the papers of the Company. If he found any references to the matter he would let Mr. d'Almada see
them.
Mr. d'Almada: Thank you!
7,000
$ 41,000
$ 60,000
400 China Lights com
bined
1,780 Taxis and 100)
China Sugars.
175 Wharves and 2,000
Cercents.
"3,000
150 Hong Kong Ropes
combined.
$101,000
$23,000
300 Hong Kong Lands aad 100 China Sugars. Peoples' Savings' Cor
$ 10,500 $ 31,000
$ 30,500
$ 75,000
poration,
Mortgage.
4,000 New Engineerings
and
Sugars,
200, Malabon
5,000 Hong Kong Ropes
combined.
800 Hong Kong Lands.
$ 50,000
950 Wharves.
$ 40.000
$ 52.500
200 Wharves.
1,000 Hong Kong Tramɛ and 100 Hong Kong Lands,
$ 35,000
100 China Sugars
100 China Sugars.
100 China Sugars. Mortgage.
2 30,200 $ 35,000 8 30,000
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Selected Grade Lump Coal.
UPPER LEVELS.
MID-LEVEL
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$21.00 PER TON,
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Best Household Nuts. (FOR KITCHEN USE).
UPPER LEVELS ·
MID-LEVEL
CENTRAL DISTRICT Terms: Cash with Order. Minimum Quantity :-One Ton.
in one
$19.50 P** TON.
18.50 do. 17.50 do.
ARNHOLD & CO., LTD.,
FRENCH BANT BUILDING,
Chairman: As far as I can say, most of the shares were deposited or two baaks, and they were sold in most cases. They were accounted to us. In some enser, we sold shares and put the money into the bank.
Do you consider that the majority of persone who borrowed money from the Company were worthless 7 "If the above list should be cor--If their securities do not cover reet, will you kindly furnish me the amount of their loans, I don't. with the pumes of the borrowers, think we shall get much, from them,
The balance-sheet iesued in Decem the respective dates when such
lans were made, at what rate of ber 1923 showed a reserve against interest and the period of euch bad debts of $350,000. That was Joans respectively ***
provided for on the advice of the
From the list supplied it is not possible to give the information asked for!!
10. If such list should he in- correct, will you kindly furnish us ith a correct list with the parti- culars asked for in question 01"
**A "correct list showing out. standings at December 31, 1924, and carried up to date with parti culars of loans and repaymenta has been drawn up and is open to in.
Covering Losses. -
The following gentlemen served as meribers of the Finance Com- mitice:-Rev. Father Robert, Mr. R. Shewan, Mr. H. A. Cart-spection," wright, Mr. C. E. H. Beavis, Mr. Chau Shiu Ki, Mr. Sam Pak Ming, 11. If, after such loans were and presumably, Mr. Fred. Ellis,made, the shares or any of them Managing Director."
depreciated in value, what were. the steps taken by the Directors to obtain further margin or cover?"
Mr. d'Almada: Arising from that answer, will you say, from your records, whether Mr. Shewas held the qualifying number of shares to enable him to get as a Director or as a member of the Finance Com- mitter?
U
I presume the Directors took what stepe they considered neces sary to obtain further margin on the loans, as from the Minutes it would appear they were pressing Chairman: I will look that point the Managing Director to take steps to protect the Company's in. Powers of the Committee.
terests."
7 What were the powers," if any, given to such persing by the Board of Directors as a body 7"
"No powers appear to have been delegated to the members of the Finance Committee, who acted in an advisory capacity The owers of the Directors are clearly set out in Articles 110 to 125 of the Articles of Association, which give the Directors power to raise, borrow, and to invest, lead, and otherwise den! with any moneys."
5. If the reply to question No. should be general powers can
T
you
arc
Mr. d'Almada; I take it satisfied. From the minutes you haye mentioned, that the Directore had laid practically at the blame for the Company's debts upon the Managing Director.7
Chairman: They certainly looked to him to protect the Company's intereste as much as possible.
Mr. d'Almada (thoughtfully): I see!
The next question was:-
12. If any of such cans were repaid, can you give us the date or dates when such payments were
The questions were then resumed, you tell us whether the game includ-made and by and to whom they 4. If no grant of the said landed borrowing powers for the pur-were made was ever made by the Government pose of horrowing money to lend the "Dates of repayment are shown to the company will you kindly same cut at a higher rate of interest in the statement referred to in re state from your records the reasons than the interest payable by the rly to No. 10. The records do not such loans on the show by and to whom they were reasons which prompted the company on
made;" Directors to abstain from applying security of shares in the local or for same for the reason or reasona which prompted the Government to refuse to make the grant if such was the case "
LT.
There is no record among the papers in the possession of the Liquidators stating whether the grant had ever been made or that the Government · bad refused ́to' make one. Reference to a grant was made by the Chairman at the Statutory Meeting held on March 20. 1924, when he stated that the original area 20.47 acres had been increased by approximately five times, and later stated that certain members of the Government had visited the site with members of the Board, and decided upon the exten, sion of favourable terme. At the same meeting the Chairman stated that no grant had been made of hand upon which Chinese houses could be erected.
other markets?
No Legal Action. "1. In cases where such pay.
"I am not prepared to express an.opinion as to whether the powers conferred on the Directors empowments were not made, what steps have been taken by the Directors cred them to borrow money in order
or by the Liquidators against the to end out at a higher rate of in-
borrowers? teres, on the security of shares."'
Loans and Securities,
"
14. If no legal steps. were faken to recover the loans, can you state the reason or reasons why euch steps were not taken either by the Directors or by the Liquida *tors 1"
"The Liquidators sold such securities as were realisable, and have endeavoured to collect what
auditors when the Company had already committed themselves to an enormous bank overdraft.
De that
Not a Lawyer." Mr. Chung Now, to revert to Article 120 of the Articles of Asso- ciation. I refer now to the item dealing with powers of the Diree tors "to horrow money for the purposes of the Company." you consiler lending out mocy for shares a purpose of the Company ?!! I find nothing hear Empowering them to do sa-You ure practically asking me to reply in a double way and I must reift | you to my answer to question 3. I am not a lawyer, and can only express ppinions. Really. Mr. Chung, you surely cannot expect me to answer that question!
Mr. Chung: Perhaps d'Almada can sayt
Mr. d'Almada: This is another issue altogether. I don't think it is fair for us to expect fr. Seth to answer that question.
|
Les Vory HOAD UNTRAL,
This attitude, I may add, has been | adopted in consultation with the
largeat creditor."
Mr. d'Almada. But have the Directors themselves taken no steps to recover any money from Ellis {
Chairman: The Directors of any Company have no powers to take any action when a Company is in liquidation.
Draft of Agreement.
20. Will you kindly produce for inspection the agreement af October 18, 1923, made between Frederick Ellis of the one par: and Denis Henry Blake, trustee Oc chalf of the company, or the other part, mentioned in Article a of the Articles of Association ?"
I have here a draft of the Agreement referred to and it is open to inspection."
1. Why was this agreement not registered with the Registrat of Companies when the Memeran. dum and Articles of Association were fied ??
"There was apparently no neces sity to register the Agreement as it was adopted on the incorpora tion of the Company."
92. Can you state any reason why a mortgage of 830,000 leat on the security of section "C" of Inland Lot No: 151 to one Mah Pak lui was not registered with the Registrar of Companies me required by law, and why the Liquidators Mr. have not, up to November 14, 1929, registered their numes 28 such against the property at the Land Office ?"
The questions and replies were gain continued at this stage:
H
Mr. Fred Ella. 15. Did any of the Directors (members of the finance committee) personally accept his responsibility for the loan and/or
share of
"I do not know of any local law which require a limited company to register with the Registrar of Companies a mortgage deed upon which the Company has advanced noney, and as the Liquidators hold the deeds relating to the property in question mortgagees, it ap pears quite unnecessary to register
their names against the property guaranteed the same?"
at the Land Office. The appoint- The answer in in the affirmament of the Liquidators will be tive,
registered by the purchaser when' 16. If the answer is in the the assignment of this property is affirmative, will you please give executed." their namee?"
17 Please furnith us with a
•
"Yes, Mr. Fred Ellis," detailed list of all contributions made by all the Directors from time to time to the Company from its inception to the present date!"
"The list is open to inspection."
18. Grants from the Govern ment were made to the Company in respect of Ininud Lot No. 2454 and Inland Lot No. 2520 (extension) situate in Wongreichong in July and November 1924 respectively. Can you tell us the reason or' rea- sons why the Directors did not build thereon, notwithstanding the fact that certain applicants for sites thereon had paid their respective. premia therefor "
"I regret I am unable to ascer tain way the Directors did not proceed with the development of Inland Lot 215 and Inland Lot 2320 at Wongneichong.
Fassage of Arms,
Mr. d'Almada: If you investigate further, 3r. Seth, you will find there is a local law which requires these mortgages to be registered.
Chairman: With all due respect. and despite the fact that you are Inwyer, I beg to differ. I think you are making a mistake, Mr. d'Almada,
But two previous mortgages of n similar nature had been registered
Yes, when they were pledged with the bankst
Mr. J'Almada: Very well; we will resume. the questions of my cliente
Por Six Months..
23. This mortgage was for a period of six months only. Can the Liquidators give any reason why the same has not been called in, or if the Liquidators have foreclosed ur entered into possession by virtue of the powers under the mortgage, why was not the security realised i The mortgage was called in al- most immediately after the Com- pany went into liquidation, and the liquidators have been in posacasion for some time and endeavoured to realise the security. I am glad to inform contributories that this pro- perty has now been sold for $20,000, enmpletion to take place on Jany- ary 18 next."
0. We have reason to believe that the following are the amounts lent out and securities obtained by the Society: AMOUNT OF LOAN.
SECURITY. $100,000
0,600 Macno Electrica.
they could from debtors. Logol 10. Frederick Ellis, the manag, $47,802.16 160 China Sugars. $ 75,000 400 Malabone, 50 Shang steps have not been taken to re-ing director of the company, had hai Cottons,100 | cover loans, as the Liquidatore are 80,000 shares of the company, and Shanghai Docks, sceatisfied it would be a waste of has been absent from the Colony Orientals, 100 Shang- money. The liquidators are enden since June, 1026. What steps have -hai-Lands,-100 Dairy vouring to compromise with debtors been taken by the Directors or where possible rather than take Liquidators respectively to ascer Farms, 2,000 Cements combined.
extreme measures hecause, in theirtain his whereabouts, or to recover opinion, it will be more beneficial the first ea!l of 81 per share due to the Company,"
by him after the winding-up "" Mr. d'Almada: Another question "No legal steps have been arises from that answer.
Will you
taken by the Liquidators to recover
Mr, d'Almada: That means that kindly tell me, in cases where loans the fret call of $1 per share duc were recovered; whether this was from Mr. Fred Ellis, the late the Company will lose 81,000, i done hy the banks themselves and Managing Director, as from en terest on the principal !
I am not in a position to state 19,000 whether the Directors abstained from applying for this site but, at a board meeting held on October 28, 1923, the Chairman stated.
*46,200
34,000 8.20,000
1: We had only received none or ten pay- $ 5,000 Bents of $1000, ruch, ns & temporary $185,000 deposit. In the ruinscurred ye way decided not to proceed with the 8 14,000 development scheme at present.”
300 China Lights .com.
bined.
2,500 Humphreys, 10 Hong Kong Banke. 150 Wharves, Government War Bonds GOD Wharves and 900
DCW and
Provident,
old
of the shares deposited with them as securities 1
cial position does not warrant the to be able to get anything at all!
(Continued on Page à). incurring of heavy legal expenses.