The Sun.
London, England, 1866-05-29 00:00:00

Railway and other Companies.

IMPERIAL MERCANTILE CREDIT (LIMITED.)
A general meeting of shareholders in this associa-
tion was held yesterday at the London Tavern, to
consider the propriety of a voluntary liquidation of
their affairs. Mr. W. Jackson was voted to the
chair.

Some objections having been expressed,
The CHAIRMAN said he had undertaken the office
at the earnest solicitations of some of the largest
shareholders ; he had only recently left a bed of
sickness, and wished that he was not a shareholder.
Acting under legal advice, it was at the request of
the committee of shareholders that the directors
were not present in that capacity. He and the
other members of the committee, having looked
into the past affairs of the company, now asked the
meeting to deal only with the present and the
future. It was due to their creditors and their own
property that they should deal carefully with both.
In reply to a question, he stated that he held 250
shares in the association, and some time before the
stoppage he had purchased 250 shares, but since
that they could not be transferred. He thought the
shorter the discussion they had on that occasion the
better it would be for them. He would ask them
to pass unanimously the resolution he had to sub-
mit for a voluntary liquidation if they wished to
avoid the delay and expense of a compulsory wind-
ing up. He could tell them that if their affairs were
now well managed they would get through their
troubles sooner than they expected, and perhaps rea-
lise nearly 20s. in the pound. They had, like other
companies, to pay for their experience, and if they
agreed to the voluntary winding up and the sugges-
tions of the committee he believed that before 12
months from the present time propositions would be
made to them by which they would have one of the
best concerns in the kingdom. They must avoid
banking in finance companies, and banking com-
panies must avoid financing. The finance com-
panies had taken away a great deal of his business
in lending money to contractors, and in return
sharing the profits. The company had £1,500,000
paid up ; they could issue debentures to a certain
amount, so as to enable them to carry out their en-
gagements. He concluded by moving that the re-
port, an abstract of which has appeared in The Sun,
be received and adopted.
Mr. EAMES seconded the motion, and at the same
time protested against the interference of the large
shareholders without consulting the smaller ones.
Ile was in favour of the proposition for the volun-
tary winding up, as it was much easier to get into
Chancery than to get out of it. They had 21 direc-
tors, two managers, and one secretary; dividends of
20 per cent. had been paid, yet all at once they had
been brought to a standstill. They had been told at
the last meeting there was no chance of a call, and
now the call was doubled. If only ordinary pru-
dence had been adopted, and care taken not to lock
up capital, the result would have been different.
(Cries of " Time, time.")
The CHAIRMAN appealed to the meeting as to
whether they wished to go into these matters. Every
one would have something to say, and they would
not be able to get through the business for which
they had met.
Mr. EAMES contended that the present position of
the company had been the result of gross mismanage-
ment, and that the directors ought to be brought to
book for it.
Mr. HOYES, while he admitted the good advice of
the committee, took exception to the manner in
which that committee was appointed at a hole and
corner meeting." Their appointment did not emanate
from the body of the shareholders, and he thought
the directors should have been present to answer for
themselves. In winding up he thought they should
take pattern by the plan adopted in winding up the
Western Bank of Scotland, where they appointed
three liquidators and five shareholders to superintend
the liquidation. They made heavy calls on the share-
holders, paid off every creditor in full, then gradu-
ally and carefully realised the assets and divided them
rateably among the shareholders, and the liquidators
received the thanks of the creditors and shareholders.
They took proceedings against some of the directors
and recovered £171,000 from them toward the
assess. He proposed that Mr. John Ball, of the
firm of Quilter and Ball, be associated with Mr. A.
Young, of the firm of Coleman, Turquand, and
Young, as liquidators, on the ground that Mr.
Young's partners were engaged with the affairs of
Messrs. Peto, Betts, and Co., with whom the asso-
ciation had large transactions. He proposed that
Mr. Ball and Mr. Young be the liquidators, and
that a committee of three shareholders be appointed
to confer with the liquidators, and to superintend
the liquidation.
The CHAIRMAN said some of the directors were
in the room, and they did not shirk their respon-
sibility.

The report of the committee was then unani-
mously adopted.
It was announced that within a fortnight another
meeting of shareholders would be held to confirm
the resolutions passed at this meeting.
The CHAIRMAN then moved, " That this associa-
tion be wound up voluntarily under the Companies
Act, 1862."
Sir W. CLAY seconded the motion, and it was
carried unanimously.
Mr. MORRIS, the solicitor, having explained the
advantages to shareholders and creditors of winding
up voluntarily under the supervision of the Court,
The CHAIRMAN moved the following resolution :
—" That if from any cause it should be necessary
or desirable to have the aid of the Court, a proper
application be made to have the voluntary liquida-
tion carried out under the supervision of the Court
as distinguished from a winding up in court."
Mr. Ho/Ts seconded the motion, and it was car-
ried unanimously.
On. the motion of Mr. HOYES, seconded by the
CHAIRMAN, it was agreed that Mr. J. Ball be asso-
ciated with Mr. A. Young as liquidators in the
voluntary winding up.
The CHAIRMAN said, as Messrs. Peto, Betts, and
Co. were mentioned, he thought it right to state
that both Mr. Jay and Mr. Young had examined
the securities lodged by that firm, and found they