TAKING A PARTNER.

Auckland Star, Volume LVII, Issue 12, 15 January 1926, Page 8

TAKING A PARTNER.

BREACH OF LEASEHOLD. LAND BOARD'S DECISION. (By Telegraph.—Press Association.) GISBORNE, Thursday. A case came before the Gisborne Land Board to-day which involved the question whether a tenant could take in a partner unknown to the board, and be considered as occupying a section exclusively for his own personal use and benefit, and not directly or indirectly for the benefit of some other person. Under the conditions of small grazing runs it is distinctly laid down that the lessee must gain the land concerned for his own use and benefit. A statement placed before the board showed that at the November meeting L. J. Spence made application to subdivide Run 41 and transfer it to H. L. Spence, T. B. Spence and H. C. Spence. On investigation being made it was found that L. J. Spence had taken his brother, T. B. Spence, into partnership soon after the original lease was granted in 1900, and the partnership still existed. Solicitors for the parties were then called on to show cause why the section should not be forfeited. The case, the statement continued, was a serious one, and if it was considered that only a technical breach had been committed, tlien similar partnerships would have to be allowed on all Crown leases. In other words, the board would have to be careful not to create a precedent. It was reported that such partnerships were fairly common in this district, and if such Was the case it was essential that publicity should be given to the fact that they were illegal. In the course of a long discussion by members the Commissioned. Mr. E. H. lariiic, said the Act aimed at preventing du mmyism> .. but there WM I n(j « «nt le a . nythlng "»* »» the V that only a technical breach had been committed. en It was finally decided that the partnersh,p was a breach of the conditions of the lease and that the parties be called on to dissolve it immediately, otherwise forfeiture would have to be considered