THE TYSER LINE.
AN IMPORTANT DECISION.
On Augusc 9th, last the appeal t£ Mr Dawes (of die Kew Zealand Shipping Company) and another .shareholder :to have the Colonial Union Company wound up compulaorily, under supervision of the Court, was , dismissed, the - petitioners having failed to show Mr Justice 'North good reason for interference. Tbie is a serious matter ior both, the New Zealand Shipping; Company and. Shaw, SaviU's, who will now be at once actively pppofltod by the new Tyser Company. His Lord' ship (Mr Justice North) said: "Thecompany was formed m 1887 for the purpose of carrying on the trade m frozen meat from New Zealand, of which a large quantity was brought i)o this country, though how it was disposed of when it got hero no one seemed to know. The company carried on business .for.about a yuaf under some difficulty, owing to compett- ■ tion. There seemed to be a good many other persons desirous of carrying on 1 a profitable trade, and, there being a. loss to all—probably .from the com: petition—an agreement wan . come to between the - Colonial Company,' the Shaw, Savili, and Albion Company, and the New Zealand Shipping Company, for ..limiting the trade of tho Colonial Company both as to the number of vessels Jthey were to employ, the".number of voyages each vessel was to make, and tho maximum amount-iof meat that each vessel was to ?carry. on. eiich voyage. Clause 10 of the agreement provided that Shaw, r!Saviir and Co. and the New Zealand Company were each to pay to 'the Colonial Company for loss of profit which it might have made,if not fettered by the arrangements'in 1 the agreement, £2500 a year. >T.his "agreement was to continue ia force for five years, unless either, Company should be wound up or, a resolution passed for winding up. About this time MessrsTyserand Co.j alargeshipping firm with New Zealand, who were at the bottom of the foundation of the Colonial Company, made a contract with some per* sonsinQueenslandand there wasanan-ange-nient "betweenj them ai*4 the petitioners (the British India Associated Steamers),' under which the petitioners' contribution to the joint adventure took the shape o £ the acquisition of 10,000 shares m the Colonial Company. From this time thebusiness was carried on under circumstances which the petitioners said '<jag. > favourable to large profits being \nade ' though the other side denied t'^Jg. ]£• appeared that considerable difficulty arose m carrying out the joint agreement, and a letter was written on fcehalf of the Colonial Company to Shaw, Savill. and Co., alleging that under tho tripartite agreement the other companies had not per-t - formed their-part of it, and threatening ■ to put an end to it. On September 7, 1889, a new company .called' the TyserV Line Company was formed to take over the Colonial Company, Qu the 13th of September a circular was issued summoning a general meeting for the 23rd, for tho purpose of considering, and if thought fit, confirming an agreement of September 10. In this circular tha directors stated that the agreement entered into with the two main lines had . not been carried out m the spirit ia wkich the arrangements were conclude^ and while themselves determining to. adheres strictly to their terms, they thought ifc . ■ expedient m the interests of the'company -; to avail themselves of the-proposala of the Tyser line, under which the vessels of the Colonial Company would 'be chartered by the new company. At the meeting of the 23rd the agreement was confirmed by, 1 the shareholders by a majority of more than one-fourth. Directly afterwards the present petitioners commenced.an action - ' against the Tyser Company and the directors for the purpose bf getting rid of the agreement, upon the ground that it was. one that could ■ not bo enforced against shareholders who did not assent to it, that the sale "was not abona fide one, that Tysers>were_ ' directors of the comoany, and that theprice was insufficient/ These gmijMfc* appeared not to ba warranted by the facts. On Apnl 29 notice was given e£a meetingto beheld m May for the purpose of winding up the Colonel Company, a*d tt > had been urged that the winijiug up was %. determined upon for the puvposf of making good what was known to be bail, and, ■ getting nd of the proceedings m tho action, though there did not apW to bo any evidence m support of srofc a state.-; ment. . The meeting- was held on May 2, at which every shareholder was present either m pencm, cr by proxy, and the resolutions were passed by a majority of I 1? to I. At the confirmatory meeting a'rWß WiVS demanded by the dissentient sfcireholders, when thirty six sha.rd»older». holding 49,766 shares, voted m favor of tho resolutions, and. tfcree t holding 15,«fc
shares", voted against ; so that there was more than the requisite majority m favor of confirming the resolutions. The new agreement appeared to be a perfectly bona fide one, and i-easonably entered into. The petitioners having failed to show any special circumstance for the interference of the Court, the petition would be dismissed with coats." ,;;
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THE TYSER LINE., Ashburton Guardian, Volume VII, Issue 2544, 15 October 1890
THE TYSER LINE. Ashburton Guardian, Volume VII, Issue 2544, 15 October 1890
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