COMPANIES IN LIQUIDATION

Evening Star, Issue 22595, 12 March 1937, Page 3

COMPANIES IN LIQUIDATION

QUESTION Of DISPOSAL OF BOOKS SUPREME COURT ORDERS Applications for the release of liquidators in several companies that have gone into liquidation and for orders as to the disposal of the books and papers of those companies came before His Honour Mr Justice Kennedy in the Supreme Court this morning. In respect to the Crystal Manufacturing Company Limited, Mr J, M. Paterson asked for such an order. He said that in cases of this kind in England orders had been made for the destruction of the hooks. In this case the liquidator had no desire in the matter, but as quite prepared to hand over the books. His Honour; Does he suggest any reason why the books should he preserved in this case for any special period? Mr Paterson: No. He has not suggested any reason why the books should be kept. His Honour: Is there a rule for their destruction in any way ? Mr Paterson replied in the negative, hut added that there was a rule which seemed to envisage destruction. In further reply to His Honour Mr Paterson said that orders which hfe had seen made in England directed the retention of the books for periods ranging from two to five years, then to ho mutilated or destroyed by fire. Mr Paterson said that probably all difficulties could he overcome by ordering that the hooks be handed over to the Official Assignee in terms of the rule. . His Honour made an order releasing the liquidator from the administration of the company, and directing the liquidator to deliver to the Official Assignee all the hooks and papers of the company. STAB STOBES LTD. An application for the release of the liquidator and for a direction as to the disposal of the books and papers was made by Mr N. W. Allan in the case of Star Stores Limited (in liquidation). ' Mr Allan said the circumstances were similar to those of the previous oase, except in respect to the disposal of the hooks. In this case Star Stores Ltd. was a selling subsidiary of Messrs Oswald M. Smith and. Co. Ltd., and the liquidator thought it possible some access to the books might be desirable in the future. He asked that an order be made for him to retain the custody of the hooks for five years, and then dispose of them as the registrar of companies directed, or destroy them. His Honour made an order releasing the liquidator from administration, and directing that he retain for a period of five years the books and papers, and at t/h© end of such period cause them to be destroyed by lire. In respect to Star Storeg Ltd., Timaru (in liquidation) His Honour made a similar order.