COMPANY IN LIQUIDATION

Auckland Star, Volume LXXVI, Issue 117, 19 May 1945, Page 6

COMPANY IN LIQUIDATION

RIGHTS OP SHAREHOLDERS

P.A. CHRISTCHURCH, Friday. An order that the preference shareholders were entitled to share pari passu with the ordinary shareholders in the surplus assets remaining in the hands of the liquidator of the Westport-Stockton Coal Co., Ltd., was made by Mr. Justice Northcroft in a reserved decision'. When an originating summons was heard last month the Court was informed that the liquidator. William Hardie, who was the plaintiff, had discharged lbractically all the company's liabilities and had repaid the face value of all shares. He estimated that there would be approximately £34,200 by way of surplus assets. Ordinary shares totalled £262,940, and preference shares £132,631. , "Upon consideration of the language of the constituting documents of this company, including the resolutions creating the preference shares, I can find nothing to disturb the rights of all shareholders, whether ordinary or preference, to equal treatment in the distribution of the surplus assets," said his Honor. He added that all of the parties were entitled to their costs out of the funds in the hands of the liquidator.

At the hearing Mr. A. C. Perry appeared for the liquidator, Mr. E. A. Lee for Walter Baxter, representing the ordinary shareholders, and Mr. L. J. Hensley for Stuart Palairet Godfrey, representing the preference shareholders.