QUESTION OF ACCOUNTS

Evening Post, Volume LXXXIX, Issue 132, 5 June 1915, Page 6

QUESTION OF ACCOUNTS

BUILDING SOCIETY AFFAIRS SUPREME OOUET JUDGMENT. His . Honour the Chief Justice (Sir Robert ' Stout) delivered judgment \to^ 'day in the case in which the Colonial Co-operative Building" Society of Wellington sued its former secretary, John Crewes, for £911. "The only point that is in dispute," said His Honour, "is whether the defendant is 'liable to the plaintiff for the cash received in the office when leave of absence was granted- to him. If he had been discharged from all duty, it does not appear to me that he would have been so liable. The position, however, is as follows: -Up to 16th October, 1912, he was secretary of the plaintiff company, and therefore responsible _ for moneys paid into the funds of the society, though he was asai&ted by some of his family in the performance pf his duties. He was secretary and did secretarial work. On the 16th October, 1912, the following resolution was passed by the directors of the society : 'That three months' leave of absence be granted to tho secretary after the annual meeting { that Mr. F. Crewes be appointed actingutcretary.' The annual meeting, from, •vhich this leave of absence was to date, was never held. The defendant continued to sign any cheques that had to be signed by the secretary of the society, and 'he frequently attended at th© society's office. He continued to draw his salary as secretary, and no salary was paid to Vlr. F. Crewes, who, however, then did the clerical work' of the society. The next minute referring^ to the matter appears in 'the rough minutes of the meeting of the Bth October, 1913. It js in the defendant s handwriting, and is as follows : — 'The secretary intimated that he would full (sic) duty and act as before his illness. To this th© directors assented.' Either some word like 'resume' has been left out before the word 'full,' or else that word means 'fulfil.' This memorandum does not appear in the formal minutes in the minute book ; but, the defendant did resume his full duty as secretary, and continued in this capacity till 30th June, 1914. On the 27th May, 1914, this minute appears: 'A letter from the secretary tendering his resignation, etc., were read.' And later, 'Mr. Uric moved, and_ Mr. Milne seconded, and it was unanimously resolved , that the secretary's resignation be accepted,' and on the 4th June, 1914, it. is minuted that the duties of Mr. Crewes as secretary were to terminate on tho 30th June, 1914. "In face of the fact that, owing to the annual meeting never being held, the time for; the commencement of the leave of absence never came ; that the defendant continued to act as secretary, though not doing all the work of the office ; and that he was paid as secretary between 16th October, 1912, and Bth October, 1913; I must hold him' liable for that period. His liability for the other periods is, in my opinion, incontestable. I shall give judgment for the plaintiff company for any sum that may be found due, and order the Registrar to 'take accounts, thus allowing the defendant to see that the amounts charged are actually due. I also order the Registrar to take the accounts yearly, so that the deficiency in each year may be seen. Further, I order that the accounts . of the society during the period 16th October, 1912, to the Bth October, 1913, be specially -taken. Any further questions arising are adjourned, either party to be afc liberty to apply. Costs reserved."