S.M.T. " Secret " Sale Criticized
Page 49
If you've noticed an error in this article please click here to report it so we can fix it.
THE action of the directors of the
Scottish Motor Traction Co., Ltd„ in selling "without reference to the stockholders" their two hire-purchase finance companies to the Commercial Bank of Scotland, Ltd., was criticized at the annual meeting of S.M.T. in Edinburgh last week.
The Scottish Midland Guarantee Trust, Ltd., and the Second Scottish Midland Guarantee Trust, Ltd„ were sold last November for £1,710,000, at a capital profit to the parent company of £710,000.
Sir Andrew Murray, chairman, said that he and his fellow directors would have preferred to place with the stockholders the decision to sell the undertakings, but they were prevented from doing so by a condition of the offer.
With the help of expert opinion they came to the unanimous decision that it was in the interests of the company to accept the bid.