27.
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The publication of the Statutory Report was confined to the shareholders also one copy to the Regi- strar of this Court and one for the Company's file. It was never printed. It was typed out five copies at a timetrough carbon paper. Üne copy was sent to each shareholder in compliance with the Ordinance. The shareholders know what it meant, they knew what was being done. The booka were kept with no attempt to deceive on the subject and were open for inspection by all Directors.
In addition to the Directors of the Company there was a loan on thla system taken out by mrs. Brewer This aroue by reason of the Directore having requested her to hold $480,000.00 worth of shares as trustee for the Company to keep tham alive after the share list was closed, Nething of this trust could appear on the Company's ahare register, the Law prohibiting that.
They had to be registered in Ara. Erever's name. who had to be personally liable. Although Mira, zawer was trustee for the Company, she hat to sacept for the unpaid portion of the shares liability for all calls, Similarly when this loan was entered in. to by tmich ant was personally liable for the uncalled portion, she also beddus liable for the repayment of this loan and this was signed for by her in her own personaly name, and not as trustee, because that would Îve necessitated notice of the trust où the Register, Because she was trustee for the Company, because the Directors asked her to be trustee, krs. Brewer at once asked them to protest her. In consequence therefore, a letter of indemnity was signed by them, This letter was solely for the purpose of protecting ...rs. Ürewer from the consequences. (kxhibits NIB 22 & NIB 23 letter where Mrs, Brewer is asked to take the shares on trust, shewn to Jury).
This letter of ingemity signed by the Directors was ber only protection. I was quite satis- fied that she should trust in that protection, because I had belief in the financial standing of those Directors and their integrity and they were the same men who had signed promissory notas for loans.
The loan taken out by Mrs. Brewer was r®- paid as soon as any of these shares wers sold. Mr. Brawer then referred to the Head Office Loans, Exhibit R. and the Hong Kong Current Accounts, he followed through the transactions referring to Ars. Brewer.}
As to the question of this transfer to the Arstone Trading Company. in the early days we had intended to open an import and Export farm in co-opera- tion with the instone Banking Corporation. Then the question of benching out arose and I suggested to con- solidate in Hong Kong rather than to branch out. But the argument against this was the benefit with regard t the Import and Export firme We had secured a number o: agencies, including ore for a make of bicycle which would have sold well.
When the Chikki branch had been opened and had been quocqvšíul, our banknotes were the curreng iu úhákká. That having occurred it was natural that we should at once proceed to incorporate the Import and
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