The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1911-04-04
STOCK REDUCTIONS
some COMPLICATED
HOUSE AMENDS SENATE BILL TO
LET CORPORATIONS
DwrNDLB.
(FtOm satarday's Advertiser.l

The house took action upon a fnan.
cial measure originating in the senate
which affects corporations, and in the
process is exceedingly complicated.
The bill, known as s. B. 30, provides
for the reduction of the capital stock
Of corporation, The senate bill was
not 50 very clear as to just what pro.
visions should govern this matter, for
upon such reduction some stock has to
be given mp by someone ordinarily.
The finance committee of the house
in clearing the corporation atmosphere
reported in favor of the bill with the
following amendment of section one,
which was Endorsed by the house and
the bill passed second reading:
"Any corporation or joint stock
company, upon complying with the re-
Quirements of this act, may, by vote of
not less than three-foarths of all the
shares of stock, or if two or more
classes of stock have been issued, of
three fourths of each class of stock out.
standing and entitled to vote at any
meeting heretofore or hereafter duly
called and held for the purpose, effect
a reduction of its capital stock by re-
firing or reducing any class or num-
Der of shares of stock, or by reducing
the par value of its stock.
elf reduction is to be made by the
surrender and retirement of a portion
of the outstanding stock, each stock
holder shall, inless the resolution auth
oriz!ng the reduction shall otherwise
provide, be entitled to participate pro
rata in the surrender of certificates for
cancellation and retirement. If any
stakeholder shall fail to exercise his
option within thirty days after written
notice given him by the corporation.
the corporation may accept any other
shares in lieu thereof.
=" A sworn certificate shall be signed
by the presiding officer and secretary
of the meeting and presented to the
treasurer of the Territory setting forth
therein the action taken and certify
ing that at the time such vote was
taken the company was not and has not
since become indebted In any manner
over and above half of the amount of
its remaining capital. The treasurer
shall record thereon the date of its re.
ceipt in his office and shall publish
notice of the same in some suitable
newspaper in Honolulu at least once
week for four consecutive weeks, the
first publication to be not less than ten
days after the receipt of said certif.
cate. Upon the expiration of thirty
days after the first publication of said
notice, if no protest or objection to
the proposed reduction of capital shall
have been fled with the treasurer by
any person claiming to be a shareholder
or creditor of snch corporation, the
treasurer shall enter such decrease of
capital of record and the same shall
thereupon stand effected as of the date
of the original fling of said certifi-
cate. Otherwise the treasurer shall
proceed to consider any objection made,
and if he shall thereupon be satisfied
that the vote certified has been trlly
taken and that the corporation was not
at the time of fling of said certificate
indebted beyond the limit aforesaid. he
shall enter such reduction of capital
of record in manner aforesaid