TAUPO TIMBER COMPANY.

Auckland Star, Volume XLVII, Issue 69, 21 March 1916, Page 2

TAUPO TIMBER COMPANY.

SUPREME COURT CASE. APPEAL AGAINST RESOLUTION. (By Telegraph—Press Association.) WELLINGTON, this day. In the Supreme Court to-day Mr. Justice Hosking delivered judgment in a case in which debenture holders in the Taupo Totara Timber Company appealed against a resolution and reconstruction. The judge held that appellants were entitled to consideration, and adjourned the case for a month to enable terms of settlement to be arrived at. ■It was stated by counsel for plaintiff when the case was argued last week that the Taupo Totara Timber Company and the Wellington Industrial Development Company, Ltd., had for some time past been engaged endeavouring to get passed legislation giving them power to extend the- railway-to Taupo, in the belief that their- profits, would be. increased, by .the consequent extra traffic. .That legislation was passed in 1914. Since then a resolution had been passed at a meeting of shareholders, approving the scheme of arrangement, under which a new Taupo Totara Timber Company was formed... Fresh, debentures were to be issued in place of the old ones—which had been surrendered —payable in 1922. On behalf of the appealing shareholders, ft'was argued that as soon as-th'c'two companies went into liquidation the original debentures became immediately payable. The appealing shareholders did not attend the meeting at which the scheme was agreed to, and the proceedings were taken trader section 26 of the Companies Act, which gave shareholders the power to appeal to the Court, and 'gave theConrt power to amend, vary or ! confirm the scheme.