Expert: Steven Taylor - 4/19/2011

Question
QUESTION: I have a stock certificate for 100 shares in the above mentioned company.  An old friend who worked as a stock broker (now retired) tried to look this up for me and the only information he could give me is that he believed this company was bought out by Maylae or Maylac Gold mines Ltd. # M223608 (company number on stock exchange perhaps)  and that the latter company was in the process of winding up wioth proposed distribution but could not provide any additional info.  These stocks were sold originally to Mary E Matheson through Colling and Colling (I think) back in the 1930's.  She sold these shares on Aug.3 1936 to a relative of mine.  Could I be so lucky that these might be worth something?

I also have a certificate  dated Dec. 21, 1938 from Silver Valley which was succeeded by Zagabelt Mining Company.  

and, shares in Kenecho Gold Mintes Limited, 100, Advocate Mines Limited dated Apr 20 1961

and, Silver Valley Mines Limited 100 shares in Nov 1938 and lastly Baldwin Gold Mining Company Oct, 6 1926 for 200 shares.

With the economy the way it is today, I am sure  you can appreciate how curious I am about something like this and if they are worth anything, I would gladly pay you for your expertise or donate something to your favorite charity.

I look forward to hearing from you at your convenience.  Thank you so much.  Sandy

ANSWER: Sandra, from the information I have available:

Hutchison did a 1 for 4 reverse stock split and became Maylac Gold Mines. I don't have any specific information on what happened to Maylac, but if it was wound up, and if shareholders received any distribution, and if the original holder didn't receive the distribution, the money would have been turned over the government for safekeeping. That money may or may not still be available, but you can search the online databases (www.missingmoney.com and www.naupa.org#. You will need to search under the original name on the certificate as well as the name of the person it was sold to, as that sale may not have been properly reported to the transfer agent.

Silver Valley Mines did become Zagabelt Mining, but Zagabelt was dissolved in 1958.

Kenecho lost its corporate charter in the 1950's. No value.

Advocate was liquidated in the early 1980's. No value for common shareholders.

I have no information on Baldwin at all, but 1926 predates much of the information I have available. It also predates the stock market crash and Great Depression, which very few companies survived. However, you can either contact the Province of Incorporation #listed on the certificate) and see what information they have available, or contact a current broker and see if they can run it down for you.

---------- FOLLOW-UP ----------

QUESTION: Thank you. However, could you please telle me what happehns when a company dissolves, i.e.  Zagabelt.  Does that mean it was bankrupt at that time?  If you have time to respond it would be greatly appreciated.

Answer
Sandra, when a company voluntarily dissolves, they divide the remaining assets among its creditors and then cease business. It is often done in lieu of bankruptcy as it is quicker and cheaper, and if the creditors all agree, there is no reason to involve a court. Either way, the common shareholders rank last in terms of call on the company's assets, so they received no value.