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But a building society lent him money long ago to buy the property, and every year
he repays a proportion of the loan to them, plus interest. By now, a lot of this loan has
been paid back to the building society. Probably for this reason the bank agreed to a
second mortgage. If Grant could not pay back the loan within the time limit his house
would have to be sold and the first mortgage paid up. Then the remainder would go to
the holder of the second mortgage, in this case, the bank. Very few banks will give an
unsecured loan, one without any security or guarantee they will get their money back.
Hector Grant has been to hear the reading of Ambrose Harper's will. As soon as he
arrives at the office on Monday morning, he summons his nephew Peter, the
Production Manager, to talk things over.
HECTOR GRANT: Ah, Peter. We've got the biggest crisis in the history of the firm
facing us.
PETER WILES: Good Lord! That sounds pretty fearful.
GRANT: It is. I'm afraid.
PETER: Something to do with Ambrose Harpers death, I suppose.
GRANT: Precisely. Now you know how the shares of this company are distributed.
Your mother and I own twenty per cent of the capital each.
Ambrose Harper, of course, had the lion's share with fifty per cent, and the remaining
ten per cent is in the hands of our friends the mattress-makers over the road,
Wentworth and Company. Well, Ambrose has left two thousand of his two thousand
five hundred shares to form a trust. The remaining five hundred he's left to his sister,
Caroline.
PETER: But she's a very wealthy woman. Surely she won't sell the five hundred
shares.
GRANT: My dear Peter, that's just the trouble. I spoke to her after the solicitor had
finished reading Ambrose's will, and she told me she'd had a very generous offer for
the shares.
PETER: But who from? Who knew she'd inherit them?
GRANT: That wily old bird Wentworth. He's wanted to get in here for a long time.
He knew she was Ambrose's only remaining relative.
PETER: Well, that's easily prevented, isn't it? We're a private company.
Caroline can't sell her shares without offering them first to the other shareholders. We
must make an offer, too. We can't allow Wentworth to own so many shares. If any of
us had to sell at any time he could easily get a further interest in the company.
GRANT: Exactly! But who in our family has got the money to buy them?
PETER: I certainly can't. I'm in the red as it is?
GRANT: The way you live that doesn't surprise me.
PETER: Somehow we'll have to raise a loan and buy enough of the shares ourselves
to keep the controlling interest.
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