SHARES IN COMPANY.

Auckland Star, Volume LXV, Issue 252, 24 October 1934, Page 12

SHARES IN COMPANY.

TWO APPLICANTS SUCCEED

CLAIMS AGAINST LIQUIDATOR

Judgment was delivered by Mr. Justice Fair this morning in the application brought by Arama Thomas Begg (Mr. Mason), of Pukekohe, against the New Zealand Weaving and Spinning Mills, Ltd. (Mr. Stanton), in liquidation, for a direction that the liquidator of the company should repay to him the sum of £93 15/, being the amount paid by him as calls on the allotment of 250' £1 shares in the company.

At the hearing it was agreed that as the company had gone into liquidation no order could be made for the refund of the money, and the question was as to whether the applicant was entitled to prove in the liquidation for the amount so paid by him to the company. The applicant was approached in October, 1933, by a share salesman, ■read the judgment, and asked to take shares in the company which the salesman said was then being formed. The applicant believed that the shares were being offered on behalf of the company and received no intimation to the contrary. After lie had agreed to take up the shares the applicant received from the company a letter covering the transfer of 250 shares from one G. E. Exley to him, but unsigned by the transferor. The applicant had paid to the salesman £02 10/., being 5/ on the 250 shares, and later paid a demand to the company of £31 5/.

The applicant wrote to the company refusing to sign the transfer on the ground that he had subscribed for shares to be allotted to him by the company, and had made no contract to purchase shares from any person or accept a transfer from any person. His Honor held that the applicant was entitled to prove for the amount of his claim, less the commission of £25 retained by the salesman, and made an order that the liquidator admit the proof in the liquidation for the sum of £08 15/. Costs £0 0/ and disbursements were allowed the applicant. A further application by Henry Curd, company director, of Pukekohe, which it was agreed by counsel should depend upon the first decision, was also decided. His Honor held that Curd was entitled to prove in the liquidation for the sum of £08 15/, and made an order accordingly.