THREE APPEALS

Evening Post, Volume CXIII, Issue 66, 18 March 1932, Page 14

THREE APPEALS

SHARES IN COMPANY

Three appeals, which were heard together, relating to the allotment of shares in a company, were before the Court of Appeal yesterday. The General Mortgage Corporation, Ltd., is the appellant in each ease, and the respondents are Sidney Alfred Gibbs, niedieal practitioner, Harold Leon Harley, solicitor, and Charles Robert Duke, architect,- all of Nelson.

Last year at Nelson each of the respondents filed writs against the ■ appellant claiming that each had applied for and_ was allotted one thousand £1 shares in the appellant company, relying on the representations of a man they alleged to be the agent of the company which representations were false and were known to be so by the man they alleged was the agent; that they had applied to the company to have their names removed from the share register and moneys paid by them on application or allotment repaid to them, and claiming rescission of a contract to take shares, rectification of the share register, and a refund of moneys paid. The company pleaded various grounds of defence but when the cases were heard in Wellington last September by Mr.- Justice Macoregor two affirmative defences only remained open to the company, namely, (1) that the present respondents in view of the fact that they were appointed members of the company's local advisory board m Nelson at no time had any right of rescission; (2) that if that right ever existed it had been lost in each case by failure to repudiate within a reasonable time. His Honour rulea against the company on -both defences and gave judgment in each case for the respondents. The appeals now being heard arise from these decisions. On the Bench were the Chief Justice (Sir Michael Myers), Mr. Justice Herdman, Mr. Justice Blair, and Mr. Justice Kennedy. Legal argument occupied the whole of tho afternoon, and was completed to-day. r

The Court reserved its decision,