COMPANY ACTS.

Auckland Star, Volume LXVI, Issue 294, 12 December 1935, Page 8

COMPANY ACTS.

ONE CHALLENGED.

UNCONSTITUTIONAL IS PLEA

SUPREME COURT ARGUMENT,

As a preliminary to the hearing of on action in which the parties are the Transport Mutual and General Insurance Co., Ltd. (in liquidation), whose registered office is at tlie Pufilie Trust Oflice, Wcllingotn, and Cyril Ernie Richard Webber, of Duncdin, agent, considerable legal argument was heard by Mr. Justice Callan, in the Supreme Court this morning, touching; recent company legislation: Mr. Hampson, counsel for Webber, put forward numerous submissions to show that certain legislation passed last year was. unconstitutional. Under the Companies Special Investigations Act, 1934, the Government had appointed inspectors to investigate the affairs of a group of companies. These included the Transport Mutual and General Co., Ltd. Next was passed the Companies Temporary Receivership Act, 1934, which appointed the Public Trustee receiver and manager of certain companies in the group, including the plaintiff's company. The Special Liquidations Act, 1934, determined the receivership but 'appointed the Public Trustee liquidator of the companies.

Mr. Hainpson contended that the lastmentioned Act was unconstitutional in that it took away a right of appeal to the Privy Council. As the Statute, of Westminster had not been adopted by New Zealand, Dominion legislation must continue to be governed by the Colonial Laws Validity Act. Under that Act, said Mr. Hampson, no laws made in New Zealand could lie repugnant to an Imperial Act or have extra territorial operations. An Imperial statute gave the right of appeal. Mr. Hubble, for the Crown, contended that the Special Liquidations Act,. 1934, was not contrary to, or. repugnant to, any Imperial Act.

Argument is proceeding.