SHARE BROKERS FINED

Press, Volume LXXI, Issue 21510, 27 June 1935, Page 8

SHARE BROKERS FINED

! BREACH OF COMPANIES ACT j % "The penalty in this case is in ino way of a warning," said the magistrate, Mr E. C. Levvey, S.iVI.. in the Magistrate's Court yesterday morn in;;. He imposed a fine of xviih cos.a. against A. Perry and Company, Ltd., mining engineers and broker.-!, ol' Christchurch, who plonded guiify lo issuing application i ms for shares without prospectuses. Mr A. W. Brown, who appeared for tl.j assistant registrar of companies, said that forms of applit ation wbicb purported to be Ui» applies! ion hems of a syndicate, had been .-•••in mil, whereas actually they were i s shares for a company, V/hil c Gold Dredging Company (1 Ltd., which was then om.y iumi,'! formed. The offence was raMr-r a serious one, he said, and was liable for a few not exceeding £SOO, itnrk-r S-Hion 46' sub-section 3, of the Corn pan i'-s Act, 1933, which stated: "ft shall not be lawful to issue any form of application for shares in or rj; b' ii' ore ; of a company unless the l'ortn is is n :d with a prospectus which «:o,n:>!i"s with the requirements of this seel ion." Mr Brown said thai there was no ! suggestion jf any attempt to d'-fram! on the part of the defendant, who did | not know what was rerjaired under j the act. "This is the first pro-rention of its I kind under this section of the net," iw said. "The whole purport of Ihe regulation is to prevent people from being defrauded." \n alternate charge against A. ii. j Perry was wi'hdrawn. j Mr J. A. Johnston, who appear':'! j fo. defendant, said that his client had j overlooked the snb- s-r-iion on winch • the charge was based. "Snare haw!:- j ing" had been giv; n ► nobbe'tyl during the framing of the acl. lint I'a'J pro\ ision in the sub-s"eLinn bad apparently escaped notice, j