245
A
?
no means to become shareholders and
thus lessening the security of the insured, nor would the position of the China Mutual Insurance Company be different from that of other Companies in this respect.
In support of this statement I would adduce the following facts:-
1st The paid up capital is now $300,000 and at date the undivided earnings of the Company amount to about $250,000 showing actual funds $550,000
2nd The Articles of Association provide that should the losses at anytime reduce the available Capital to $150,000 a meeting must be convened to consider the advisability of dissolving the Company
3rd That no discretion is sought to reduce the value of the shares beyond one third of the present amount, and no intention exists of doing so. The shares would simply stand with a $500 liability of which $300 would be paid up. Under the proposed General Ordinance, greater powers would be given, but it is preposterous to suppose that the shareholders of a Company like the China Mutual would ever sanction a change which would inevitably injure the standing of the Company.
4th As a matter of fact the Directors of the China Mutual Insurance Company in virtue of their power under the Articles of Association, do not allow transfers