RECEIVER IN BUSINESS

Evening Star, Issue 22684, 25 June 1937, Page 1

RECEIVER IN BUSINESS

IS HE RESPONSIBLE FOR AWARD BREACHES ? [Pee United Press Association.] WELLINGTON, June 24. If the debenture-holders take over a linn and appoint a receiver who carries on the business, who is responsible for a breach of an award—tho firm, the debenture-holders, or the receiver? This question was discussed by Mr J. H. Luxford, S.M., in a reserved judgment in the Magistrate’s Court. Mr Luxford answered the question by asking another—Who is carrying on the business? If the receiver is carrying on the business on behalf of the debenture-holders, Mr Luxford said, cither the debenture-holders or the receiver must be subject to the award by virtue of section 89 (3) of the Industrial Conciliation and Arbitration Act, 1925. The receiver is prima facie the agent of the debenture-holders, but the conditions of debenture may declare (as in this case) that tho debentureholders shall be the agent of tho company. Consequently tho business in this case was carried on at all material times by the company, which alone is responsible for a breach of the award.

'Phe case was one in which the Labour Department proceeded against the 'To Aro Bakeries (as first defendant). Stoupe and Sons Ltd., and 11. Pa’T.v.n and Co. Ltd., the debenture-

holders (as second defendants), and V. N. Beasley, receiver (as the third defendant) . in respect of a breach of the motor and horse drivers’ award.