LAGER FIRM THAT NEVER BREWED

Dominion, Volume 32, Issue 258, 29 July 1939, Page 5

LAGER FIRM THAT NEVER BREWED

Judge On Loss Of Public Money WINDING-UP PETITION BY BANK By Telegraph—Pres& Association. ( AUCKLAND, July 28. “It seems* a very undesirable state of affairs that a company should be launched in this way, apparently without hope of success and money subscribed by a large number of the public lost,” commented Mr. Justice Fair in the Supreme Court -when a brewing company, Viking Lager Ltd., which, never brewed a gallon of lager though more than £20,000 was subscribed by the public, was the subject of a windup petition by the Union Bank. Mr. Hubble said that there was no opposition to the petition. He said that the company was incorporated in July. 1932, and acquired a site and a brewer’s licence. There had been no attempt to commence building and ■no brewing was carried out. About 69,000 shares were offered at £1 each, and'more than £20,000 was collected. Because of costs of formal business, and selling shares there was apparently nothiug left to enable the company to function as a brewing company. An advance was obtained from the bank in 1933, and that was the basis of the present petition The amount then was about £lBOO. Despite all efforts of the receiver to collect calls to meet the debt there remained a sum of £587 unpaid. In reply to his Honour, Mr. Hubble said that the sole assets were land in an Auckland suburb, which was not worth much, and a brewer’s licence, which was renewed annually. “It may be a matter for consideration by the legislature,” said Mr. Justice Fair, “whether there should not be some official appointed whose duty it should be to inquire into incorporation and methods in which the capital of a company which fails in this way hits been raised and spent. The Court itself has no power to ask for such inquiry, and the initiative rests at present upon the shareholders. Thus, for the reason stated and rather than incur a considerable amount of further expense in the conduct of an inquiry, shareholders are content to make the best of a bad job and let the matter go. That seems an undesirable thing so far as a company, whose affairs from the inception have been mismanaged, is concerned. I don’t say that this is necessarily the ease with this company, but on the face of things it appears that its affairs do require some investigation and some explanation." His Honour made an order to wind up the company and decided that the costs of the application be paid by the company.