A NEW INSURANCE COMPANY

Dominion, Volume 13, Issue 275, 14 August 1920, Page 8

A NEW INSURANCE COMPANY

._$ POWERS OP THE REGISTRAR TO REFUSE REGISTRATION. Whether the Registrar of Companies can refuse to register a company which intends to carry on the business of fire, marine, accident, and general insurance if it has less paid-up capital than .£50.000, ,was a point discussed liefore the Chief Justice (Sir Robert Stout) at the Supremo Court yesterday. Tho plaintiffs in tho case were George Herbert Scales, merchant, of Wellington, and Charles Perrin Skerrett. King's Councillor, of Wellington. Mr. Skerrett, -with. Mr. Taylor as junior counsel, appeared for the plaintiffs, and Sir. P. S. K. Macassey, of the Crown Law Office, represented the Registrar of Companies. Mr. Skerrett. said that the Registrar had refused the registration of a private company which was to be called tho "George H. Scales Pacific, Ltd.," and the capital of which was to bo .£30,000. Counsel argued that tho Act clearly authorised registration in New Zealand, and submitted that the ques'-ion ought to be answered in favour of tho plaintiffs. Tho company could increase its capital to ,£'50.000 at any time. It was purely a matter of convenience.

' Mr. Macassey contended that the Act required that at the time of registration an insurance company must have a pnidup capital of U525,00f1, and that a similar amount must be called up within four months from '-he dato of registration. Tho time of application, for registration was the only time the matter was before the Registrar, and it was his dutv. then, to see before he issued a certificate of incorporation that the capital required was paid up, or provided for. Some of the sections of tho Act wero somewhat ambiguous, but it was clear that .C 25.000 must bo provided at the dato of registration, and that a second .£25.000 should bo called upon within the ensuing four months. His Honour reserved his decision.