SHAREHOLDER’S CLAIM.

Hawera Star, Volume XLV, 4 December 1925, Page 4

SHAREHOLDER’S CLAIM.

AGAINST DAIRY COMPANY

NO DIVIDENDS ON SHARES

A civil claim of considerable interest to suppliers of dairy factories was commenced at the Hawera Magistrate s Court yesterday afternoon before Mr J. S Barton, S.M., when John A. Gulliver of Whakamara, claimed £45 11s Bcl from the Melle Dairy Co., being interest on 310 fully paid-up shaies in the company since June, 1923. Mr r. C. Spratt appeared for the plaintiff, and Mr E. M. Beechey for the dairy company. , . The plaintiff, in the course of lus evidence, said that he commenced supplying milk to the defendant company, and in 1914 he became a director. Through what he alleged was bad management Tather than from any desire on his part for "monetary gam he withdrew from supplying milk to the company in 1922, and commenced seffding his" cream to Wanganui. He had not resigned his position on the directorate and, because he had heard a rumour that he would not be admitted to a meeting of the company, > he had not bothered to send in his resignation or to attend a further meeting. Since then he had not received any interest on the 310 shares in the company, as he had previously done, nor had the company offered to buy the shares, as it had done in the case of several other suppliers.

Mr Beechey addressed the court, giving his points of defence prior to the adjournment of the case. He said that the company held that (1) the present action was not the remedy that should be sought by the plaintiff", and (2) the company’s articles concerning the payment of interest on paid-up capital was permissive and not mandatory. He stated that the company had not paid any dividends since 1922. Counsel gave the history of the company from the minute hook, reading resolutions passed each year concerning the payment of interest.

At this point the«court was adjourned till Wednesday next.