WRIT ISSUED

Evening Post, Volume CXIII, Issue 125, 31 May 1927, Page 9

WRIT ISSUED

AGAINST INSURANCE DIRECTORS

(United Press Association.—Copyright.)

(Beceived 31st May, 8 a.m.)

SYDNEY, This Day. A writ has been issued out of the Supreme Court of New South Wales against William Northam, Alexander King, Esera Morris Humphrey, John D Millen, Edward Sheffield, and Willoughby Paul, five directors of the Australian Provincial Assurance Association, Limited. Millen and Paul are coopted directors.

The writ alleges various charges, individually or otherwise, including the advancing of funds of the Association upon insufficient security; using funds of the staff and organisation of the Association to secure proxies; ana asks that amounts arranged upon alleged insufficient security and ' expended in a campaign for securing proxies be refunded and that Millcn be restrained from acting as a director. On 16th November last the directors called a meeting of shareholders and submitted resolutions asking them to express confidence in the administration of the Association's affairs. New Zealand and all the Australian States, excepting South Australia, were represented. The motion was lost, and a resolution was passed asking the directors to resign. After the meeting the directors were again asked to resign, but refused. On 22nd January last an extraordinary meeting of shareholders was called, which carried a resolution that all or any of the directors be removed from the board. "Voting at the meeting on a proxy count was 29,031 against and 17,341 for the directors. As the necessary three to one majority was not forthcoming the directors continued to remain in office. It is also charged that Millen .was not properly appointe'l a director, as the shareholders had decided that there should be four, , not five, directors.