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The Pamphlet Collection of Sir Robert Stout: Volume 84

Allotment of Shares

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Allotment of Shares.

Colonel Gouraud having attempted to cast a doubt on the accuracy of the Committee's Report respecting the allotment of shares in April, 1881, we think the shareholders should be made acquainted with the following facts.

Sir Julius Vogel had allotted to himself 3,330 shares, and for the balance of the 15,000 shares (alluded to in the former report), he handed the Secretary a list of nominees; this list was unfortunately given back to Sir Julius after the shares had been placed in the nominees' names, so no record is left of the parties receiving the shares.

Colonel Gouraud had allotted to himself 3,250 shares, and to his nominees 10,200 shares; of these there is a record, as Colonel Gouraud has placed his name against them in red ink in the allotment book. 1,000 shares were also allotted to Mr. Powers—Colonel Gouraud's nephew—total 14,450.

Mr. Carnegy had allotted to himself 500 shares, and to one nominee 2,000 shares.

In respect to the allotment of shares to Sir Julius Vogel, the following facts have been laid before Counsel, and the opinion thereon is given below.

Sir Julius Vogel sent in a written application for 1,000 shares. In the Allotment Register this 1,000 has been altered into 5,000, and 3,330 shares allotted to him.

The original letter of application was not altered, nor was any further written application made by Sir Julius Vogel.

On December 2nd, 1881, the Director's declared a dividend, and sent a circular round to the Shareholders, in which the following appears :—

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I am to inform you that the Directors believe they will be in a position to continue to pay regularly quarterly dividends, of the same amount, which is equal to 10 per cent, per annum.

There were two further dividends declared; one on the 24th April, 1882, with the accounts of the Company, and one on the 16th June, 1882; since then no dividend.

Sir Julius Vogel sold the greater part of his shares between December, 1881, and May, 1882.

Prices ruling, taken from the Official List of the Stock Exchange:—
December, 1881, to end of March, 1882 1¼—1½
April, 1882, to 29th April, 1882 13/8—15/8
13th May, 1882 1½—1¾

On that date marks of business done occur as high as 21/10.

On the 15th May, the price was 2¼ to 2¾, with marks as high as 3.

From this date the shares receded.

We contend that Sir Julius Vogel made improper use of his position as a Director, to obtain a larger number of shares than he applied for, and we have taken Counsel's opinion to see if there is a case against him for doing so.