COMPANY REGISTRATION

Evening Post, Volume C, Issue 38, 13 August 1920, Page 8

COMPANY REGISTRATION

QUESTION OP CAPITAL.

■ Argunjent was ■ heard by the Chief iDustice (Sir Robert Stout) to:day on an important legal point in reference to the Companies Act—as to whether a company ..with/less capital than £50,000 could be 'registered an an insurance company with limited ■ liability in New Zealand. The case was that of George.H. Scales and another v. the Registrar of Companies. Mr. G. P. Skerrett, K.C., with him Mr. C. H. Taylor, appeared for the plaintiffs, and Mr. P. S. K. Macassey for the Registrar of Companies. ! The proceedings were in the form of an originating summons. / ■ The question as explained by Mr. Skerrett was whether the provisions of the Companies Act prevented the registra. tion of a company with a paid-up capital of £50,000. ■ The company in question was George H. Scales Pacific Ltd., with a'paid-up capital of £30,000 with, the object,of carrying onj fire, marine, and other branches of insurance. It was admitted that there -was a provision which prevented such a company from commencing to take up the business of insurance unless and until it had a paidup capital of £50,000, but there was nothing to forbid registration. Mr. Macassey submitted that a-' company which insured its own shareholders must have a capital of £20,000,' and a foreign insurance company a capital of £50,000. He contended that it was the intention of the Act that a certain amount oil capital should be provided at the time of the * registration !of the company. How was the' Registrar to know such a concern was in a position to obtain £50,000? ■ .The Registrar must see that the Act was'complied with. 'His, Honour reserved decision. .