SENT TO SYDNEY.

Auckland Star, Volume LXV, Issue 205, 30 August 1934, Page 7

SENT TO SYDNEY.

AUCKLAND BOOKS. Minutes of Sterling Investment Company. A SOLICITOR'S LETTER. Recalled on Thursday, Mr. Glasson said that Sterling Investments had * capital of £100,000, but without looking at the books he would not like to say how much was subscribed in cash. On March 27, 2000 shares were issued to Investment Securities Association, Ltd. Mr. Monahan: That is a new name. Who arc the directors? —I understand Mr. Alcorn is a director. I don't know who the others are. Were those shares paid for?— There is an entry in the cash book showing a payment of £2000. Just crossed cheques t —lt was just lH the same wa,y. Mr. Glasson said Sterling Investments had sundry debtors for £14,000. Mr. Monahan: Who would your sundry debtors be?— Financial Publications, £5400.

This is another company on your Honor's list. Financial Publications aro apparently interlocked now. C£o witness) : What is it?—lt is an Jfucklanrl company. Who is it controlled by?— Mr. GloverClark, Mr. Abel, and another director. His Honor: New Zealand Redwood Forests come in every now and again in connection with these companies. Is that linked up with these companies? — No, not in the shareholdings. What about the directorate ?—Mr. McArthur, of course, is a director of the company. His Honor: The minute book shows that Sterling has had dealings with it from the start. Mr. Monalian said that some minutes had been pasted in the minute book. Witness replied that they had been loose in the book, and were pasted in aft.,- the Commission began. Letter Quoted. Mr. Monalian: You asked the Auckland people to do a whole lot of things, and they said it would bring them within reach of the criminal law. Did you receive a letter in these terms, dated Auckland, July 25, 1934: — "Dear Harry,—Miss Gregory has handed me your letter of June 29, enclosing six minutes or Sterling' 4 meetings for signature. On going into the matter with Mr. Wiseman, we do not think it advisable that these should be incorporated as Sterling's minutes. If at any time the book should have to be produced before any Court, then Miss Gregory and myself would fall within tL: penal sections of the Companies Act for having been parties to making a false document.

"The best plan will be to forward Sterling's minute book over here, if Mr. McArthur is agreeable to that course. However, I understand from him that Sterling was to be registered in Australia and to be operated from there. If this is so, then the minute book should stay in Sydney with the new company. You had better have a yarn 'to him and see what he proposes to do in connection -with that aspect of the matter, and when that has been decided the minute book can go wherever the company is to carry on business.

"In the meantime you may mention to Mr. McArthur that there has been really nothing requiring a meeting of Sterling's directors, except the signatures to the memoranda of agreement, one of which you forwarded back duly signed. However, I do not think that the signing of these will necessitate a minute being entered, and until something crops up there is no occasion for the minute book to be here. With kindest regards, your sincerely, (Signed), K. C. Aekins." "

Witness: I sent forward copies of the minutes of the meetings just for record purposes there. I did not mean them to be pasted in.

His Honor: In this minute book there are certain minutes starting on March 22. Are these the documents you sent over to Mr. Aekins in New Zealand for signature?—No, I did not send them over for signature. They were signed before they left Auckland. Those I sent back to Auckland were purely copies.

Do you suggest Mr. Aekins would not know he had signed them before ?—He has misunderstood my letter. To bo quite frank, when I got that letter I did not understand what he meant, because the minutes were signed, and we had them in our books. His Honor: You mean they were ready to >'be pasted in the book? —They were loose in the book. Mr. Monahan: Were they signed by a co-director?—No. They were signed by Mr. Aekins as chairman. Books from New 2ealand. His Honor: Is the head office of Sterling Investments in New Zealand? —Yes. Why are the books over here? —I brought them over. I understood they were prepared to start business here. Why did you want the books of the company here? —If they were starting business here I thought it was necessary to have them here. Those are the original minutes. You could have had copies made before leaving New Zealand? —Yes, but there was not much time. Was the transfer of these books over here anything to do with the commission starting in New Zealand?— Certainly not, so far as I know. Dr. Louat: I understand books of another company were brought over in similar circumstances. His Honor: I will probably ask the person concerned when he goes into the box whether that had anything to do with the commission in New Zealand. Another Letter Read. Mr. Monahan reverted to the letter said to have been written by Mr. Aekins regarding the minutes of Sterling Investments. He asked witness had he written the following letter, dated June 29, to the typist in Auckland:—

"Dear Miss Gregory,—l enclose six minutes of Sterling Investment shareholders' meetings. Please buy a book and paste them in in the usual way, and ask Mr. Aekins to sign. He lias already signed the originals. The book should be kept at the registered office of the company with the share register, but you can consult with Mr. Pilkington and Mr. Aekins re keepiug them at the Colonial Mutual office.—Yours faithfully, H.G."

Witness: Mr. Aekins is a solicitor, and he would know he had signed the minutes. He apparently misunderstood my letter.

Mr. Monahan: Apparently you scared him badly, because he thought it would bring him within the criminal law. You were making a duplicate minute book, and he would not be a party to it?—No, I was not. He would have marked tho minutes ■"copies."