ALLOTMENT OF SHARES

Dominion, Volume 16, Issue 176, 13 April 1923, Page 5

ALLOTMENT OF SHARES

INVESTOR SEEKS RETURN OF MONEY CLAIM AGAINST COMPANY BY TELEGRAPH—PRESS ASSOCIATION. Auckland, April 12.

In the Supreme Court to-day, before Mr. Justice Stringer, George Roy Williams McDonald, M.L.C., of Sydney, financial and general agent, proceeded against Wairakei Limited for the recovery of money he had invested. The formal claim was for a decree for cancellatop nf tho allotment to him by the defendant company of 3000 shares, also a decree requiring the company to remove his’name from the register. Judgment was sought for £3OOO, the total amount paid for shares and interest on the amount invested. The statement of claim set out that plaintiff, in October.' 1918, after several interviews at Sydney with Arthur Cleave, of Auckland, promoter and agent of the company, infonr-r'l Cleave that he would take up shares provided that, at time of the first allotment, the directors had received applications for not less than 40.000 shares. About October 24, 1918, plaintiff applied for 3000 shares, the prospectus having set out that applications' would be deemed to be withdrawn should the total number of shares applied for be less than 40,000. The. claim further stated that in December. 1918, plaintiff was informed by Cleave that this condition had been complied with, and that 3000 shares had been allotted to plaintiff. It was alleged that this information was incorrect, and that on December 3. 1918, when the company went to allotment, less than 25.000, the minimum subscription fixed by the prospectus. had been applied for. In the statement of defence, the receipt of an application for 3000 shares was admitted, but all the other allegations were.'denied. As a further defence, the defendant put forward unit should the allegations of the statement of claim be true, which defendant denied, plaintiff, by his conduct and delay, has waived and 10-st any right for cancellation of the allotment, and had confirmed Tlie allotment to himself of the sa : d snares with a knowledge of the circumstances and conditions of such allotment. Decision was reserved..