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Q.
Mr. Fitur Oy: Fitzroy:
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What is the true way of stating in this Certifi- cate the position of the Bank?.
Assuming that the transactions were not fictitious I think that the Statutory Report would be correct. As auming that the transactions were not fictitious that they w era genuine, the manner in which the report has bean drew up is corredt,
(Pending paragraph "A" of the Certificate). Might it not read that the total number of shares allotted was 10,000.Ø and that the sum of $10.00 has been paid in respect of each share with a security as to the balance?.
Yeɛ, my Lord.
Why did you not suggest that?.
I did not think of it.
Even that, my Laci, might be modified to "Personal Security”
Possibly.
would that not be a true way of stat- ing what, in your view of the books, has in fact happened?.
My trouble is that i cannot accept these transac= tions other than being fictitious entries. Tusse are not fictitious transactions in a certain sense, The Pank is left with claims on persons which they did not have before. They have their promissory notes and can sue upon them, in fact, hays muzd on one. Before the transactions they had not these promissory notes, therefore some- thing has happened, and that has to be stated in the Certificate. I suggest therefore that if you were ordered to send a Certificate you would gay sa to shares which were allotted $10.00 in respect of cash and the balance in respect of
You do say that the present statement appearing in the Certificate is false, and the reason is that cash has not been received for the full amount and personal securities have been received for nine- tenths?.
Yes.
why the total amount of ten million should not have been dealt with in the same way as the amount that was?.
If the Company's authorised capital was ten millio n, there is no reason why that method should not have been adopted, except that the application money should have seen cash.
I think you found that not all the 10, was paid in cash, in some casca only 5% was paid?, Yes.
For instance Lee Ping Sak, Li Shuá ¡long, etc., nearly all theso are the same. $9,500.00 cœuased out. *9,000.00 left on the one page and 500.00 follows on a promissory note.
His Lordskåp i
A
kr. äraver:
Are there applications which show that only be was paid?.
May I have the application forms? (Forms handed tor, Ros8)
Tere is one, Lá Shiu Hong.
inis was issued before the Company was O formed, issued by the promotors.
Mr. Fitsrov to er. FTONEK
Li Shiu song which you say was before, is dated the 11th #aynak kay. Here are several other applications. This dated the 11th May is an application after the 2nd call had been made, despite the fact that it is on the wrong form.
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